The Australian dollar has been rising against the greenback, despite the US dollar index rally back towards the top of its yearly price range and a downturn in risk sentiment after last Friday’s soft US jobs report.
Potentially, the Australian dollar could be receiving a boost from rising iron ore prices and green shoots spreading across the ASX, after the nation’s capital, Sydney, finally ended lockdown.
Pubs, cafes, and retail stores reopened across the Australian capital after vaccination levels across the state’s adult population crossed 70%. Sydney’s Covid cases fell to the lowest in two months, while total infections across the state dropped to 360 marking a steady downward trend.
With the AUDUSD pair could be set for more gains above the weekly price peak of 0.7380, due to large, huge amounts of bullish MACD price divergence basically extending up towards the 0.7400 level.
In fact, if we commodity price continue to gain and the DXY struggling around the 94.50 mark we could see the AUDUSD pair rally back towards the 0.7500 mark as selling interest below the 0.7300 level looks muted.
According to the ActivTrader market sentiment tool some 62 percent of traders are bearish towards the AUDUSD pair, which to me still suggest further short-term gains if we apply a contrarian mentality.
In order for the AUDUSD to really build sustained upside momentum we probably need to see strong bearish sentiment bias towards the Aussie emerging. As things stand, the moderate bearish sentiment is a good sign.
AUDUSD Short-Term Technical Analysis
As mentioned earlier, the four-hour time frame shows that significant amounts of MACD price divergence has formed, which extends up towards the 0.7400 area.
Furthermore, a sizable, inverted head and shoulders pattern is playing out to the upside which has a target of around 0.7425 resistance zone.
If bulls can rally the pair towards the 0.7480 area then an even larger inverted head and shoulder pattern will form, with over 300 points of upside potential.
See real-time quotes provided by our partner.
AUDUSD Medium-Term Technical Analysis
Looking at the daily time chart, a large head and shoulders pattern has played out fully to downside, so bears really do need to be careful as no bearish patterns are present.
The AUDUSD pair also has a number of buy signals on the daily time frame, such as the Parabolic SAR and rising MACD indicator. A buy signal is also in play from the William’s Alligator indicator.
See real-time quotes provided by our partner.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |