Dollar Tracking Gives EUR / USD Boost to Support
AUD / USD:
(Italics: previous analysis)
Leaving major resistance at $ 0.7849-0.7599 unchallenged, the AUD / USD is significantly below session highs as the move highlights a possible retest of major support at 0.6968-0.7242 $.
Weekly scale trend studies show that we are higher since the start of 2020. Therefore, the answer of $ 0.6968 to $ 0.7242 could still be the start of a lower buying attempt for join the current trend.
Joined by the Relative Strength Index (RSI) painting an overbought signal, Thursday approached a handshake with resistance between $ 0.7621 and $ 0.7551, and formed a reversal bearish exterior (made up of Quasimodo support turned resistance at $ 0.7621, the 200 one-day simple moving average at $ 0.7562, along with a 61.8% Fibonacci retracement at $ 0.7585 and a projection at 100% Fibonacci at $ 0.7551.
Interestingly, the resistance noted between $ 0.7621 and $ 0.7551 is set at the lower bound of the weekly main resistance mentioned above at $ 0.7849-0.7599.
The 1.272% Fibonacci projection at $ 0.7529 and the 1.618% Fibonacci projection at $ 0.7516 did a great job holding back buyers on Thursday. Formed through a bearish exterior reversal on the H4 scale, sellers strengthened their grip and dived within reach of yet another trendline support, drawn from the low of $ 0.7226, and of neighboring support at $ 0.7441.
The space below current supports highlights additional trendline support, extended from the low $ 0.7170, and support turned to Quasimodo resistance from $ 0.7394.
The rise in US Treasury yields – the benchmark 10-year note peaked at 1.683% – alongside a healthy USD supply, pushed the Australian dollar lower against its US counterpart on Thursday and ended a two-day bullish phase.
Technically, candles have retested the lower $ 0.75 before US hours and are within range of Quasimodo resistance turned support from $ 0.7456. This follows Asia’s decline from a tight decision point at $ 0.7548-0.7541, highlighted in the previous analysis.
Beyond $ 0.7456, another support turned Quasimodo resistance can be seen from $ 0.7428, pegged just below H4 support at $ 0.7441, then $ 0.74 is in sight.
Technical levels observed:
Between $ 0.7441 of support on the H4 and $ 0.7456 on the H1, this could be a welcome area if tested. However, understanding that the daily price peaked just before the resistance at $ 0.7621-0.7551, attempts to rise may have difficulty.
As such, traders are likely to closely watch $ 0.7441-0.7456. A bullish confirmation could bring a long opportunity, while a near H1 south of the zone suggests a bearish theme at $ 0.74 on the H1, drawn near the H4 support at $ 0.7394.