With four-month old descending trend-line restricting AUDUSD’s upside, the pair had no choice but to dip towards immediate TL support, at 0.7515 now, break of which could further drag it to 0.7470 & 0.7445 rest-points. In case if the pair continues declining below 0.7445, the 0.7410 may act as a halt during its plunge to 61.8% FE level of 0.7320. On the upside, the 0.7610 and the 0.7660, comprising aforementioned resistance-line, could limit the pair’s near-term advances, clearing which 0.7700 & 200-day SMA level of 0.7745 may gain traders’ attention. Assuming the pair’s sustained rise beyond 0.7745, the 0.7815 & 0.7850 could please the Bulls.
Break of 1.0775-70 horizontal-region triggered the AUDNZD’s drop targeting the 1.0700 mark that encompasses support-line of descending trend-channel. However, oversold RSI and strength of the level could help the pair to reverse from 1.0700, failing to which can highlight the 1.0660-55 zone and the 1.0615 level as follow-on supports. If prices take a U-turn from present levels, the 1.0770-75 again becomes important, breaking which resistance-line of the channel, at 1.0800, is crucial to watch. Given the pair surpasses 1.0800 barrier, another resistance-line of 1.0865 and the 1.0910 could appear in buyers’ radars.
Even if AUDCAD slipped beneath a month-long trend-line support, oversold RSI may offer rest to the pair around 0.9760, if not then the 0.9735 and the 0.9710-05 might entertain the sellers. Should Bears refrain to respect the 0.9705 mark, also breaks the 0.9700 round-figure, the 0.9660 and the 0.9600 can be aimed if being short. Alternatively, the 0.9815 and the 0.9840 can serve as adjacent resistances for the pair, conquering which a downward slanting TL, at 0.9880, may challenge the upside momentum. During the pair’s additional rally above 0.9880, the 0.9910 & 0.9935 can quickly be flashed on the chart.
While inability to surpass 200-day SMA dragged AUDCHF to the lowest levels since June-start, an eleven-week long ascending trend-line, coupled with 100-day, seems currently restricting the pair’s further downside around 0.7425. In case if the pair closes below 0.7425 on a D1 basis, it can stretch the south-run to 0.7390 & 0.7335 whereas 0.7300 & 0.7260 may try limiting the drop afterwards. Meanwhile, pair’s U-turn can avail 0.7500 as immediate resistance before confronting the 200-day SMA level of 0.7520. Though, successful break of 0.7520 could propel the pair to 0.7570 and then to the medium-term descending TL figure of 0.7625.
Cheers and Safe Trading,
This article was originally posted on FX Empire
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