0.58 holds as resistance after monthly demand gives way
AUD/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Demand at 0.6358/0.6839 yielded last week, after capping downside since 2016. Overwhelmed by the effects of coronavirus, the pair recently struck seventeen-year lows and dethroned another major demand area at 0.6094/0.5866, a zone formed in 2003 that held price higher in late 2008.
Recent movement has exposed another layer of demand at 0.5219/0.5426.
Since 2011, the primary trend in this market has faced a southerly bearing.
Daily timeframe:
Shedding more than 3.5% Wednesday, AUD/USD powered its way through demand coming in at 0.5926/0.6062 (located within recently engulfed monthly demand at 0.6094/0.5866) and drove deep into the walls of supply-turned demand at 0.5664/0.5798.
In terms of the RSI indicator, given the predominant downtrend in this market, the value continues to run through oversold terrain, recently nosediving to 13.00.
H4 timeframe:
As we fade lows not seen since 2003, newly formed supplies continue to form. The latest area to grace the charts falls in around 0.6036/0.5978. Above here, technical research shows another layer of supply rests nearby at 0.6147/0.6078.
H1 timeframe:
Wednesday’s closing movement eroded a portion of losses a few points ahead of 0.57, confirmed by the RSI recovering from lows at 16.00. We’re now head-to-head with the underside of 0.58, shadowed by two interesting channel resistances (prior support [0.6212/0.5958]). While a break north of the said levels has a reasonably appealing supply in sight at 0.5967/0.5922, a pullback from 0.58ish is possible, given the local confluence.
Structures of Interest:
The break of monthly demand at 0.6094/0.5866 commands attention, suggesting additional loss could be on the cards. 0.58, based on the H1 chart, along with neighbouring channel resistances, therefore, could hold and guide prices lower today. The caveat, however, is daily price recently joining demand at 0.5664/0.5798.
A push south from 0.58, nonetheless, has 0.57 in the firing range, followed by a potential breach of daily demand around 0.5664.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Demand at 0.6358/0.6839 yielded last week, after capping downside since 2016. Overwhelmed by the effects of coronavirus, the pair recently struck seventeen-year lows and dethroned another major demand area at 0.6094/0.5866, a zone formed in 2003 that held price higher in late 2008.
Recent movement has exposed another layer of demand at 0.5219/0.5426.
Since 2011, the primary trend in this market has faced a southerly bearing.
Daily timeframe:
Shedding more than 3.5% Wednesday, AUD/USD powered its way through demand coming in at 0.5926/0.6062 (located within recently engulfed monthly demand at 0.6094/0.5866) and drove deep into the walls of supply-turned demand at 0.5664/0.5798.
In terms of the RSI indicator, given the predominant downtrend in this market, the value continues to run through oversold terrain, recently nosediving to 13.00.
H4 timeframe:
As we fade lows not seen since 2003, newly formed supplies continue to form. The latest area to grace the charts falls in around 0.6036/0.5978. Above here, technical research shows another layer of supply rests nearby at 0.6147/0.6078.
H1 timeframe:
Wednesday’s closing movement eroded a portion of losses a few points ahead of 0.57, confirmed by the RSI recovering from lows at 16.00. We’re now head-to-head with the underside of 0.58, shadowed by two interesting channel resistances (prior support [0.6212/0.5958]). While a break north of the said levels has a reasonably appealing supply in sight at 0.5967/0.5922, a pullback from 0.58ish is possible, given the local confluence.
Structures of Interest:
The break of monthly demand at 0.6094/0.5866 commands attention, suggesting additional loss could be on the cards. 0.58, based on the H1 chart, along with neighbouring channel resistances, therefore, could hold and guide prices lower today. The caveat, however, is daily price recently joining demand at 0.5664/0.5798.
A push south from 0.58, nonetheless, has 0.57 in the firing range, followed by a potential breach of daily demand around 0.5664.
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