Unless breaking more than 2.5 year-long ascending trend-channel on a weekly chart, chances of the AUDUSD’s pullback to the 0.7440 and the 0.7500 resistances can’t be denied. However, 0.7560 is the only level that may please buyers past-0.7500 as a downward slanting TL, at 0.7635 now, could challenge their strength afterwards. If at all Bears continue ruling the trade-sentiment and post a weekly close beneath 0.7330 channel-support, the 0.7255 and the 0.7140 could reappear on the chart. Additionally, pair’s sustained south-run below 0.7140 can highlight 0.7000 psychological magnet and the 0.6930 rest-point.
With an upward slanting trend-channel portraying the GBPAUD’s strength, the pair is likely to maintain its gradual advances in direction to the 1.8000 round-figure, with 1.7960 being immediate resistance to watch. Should prices rally beyond 1.8000, the 1.8015, the 1.8085-90 horizontal-barrier and the 1.8115, comprising channel’s upper-line, may grab market attention. Alternatively, the channel-support figure of 1.7800 seems crucial for sellers as break of which could trigger the pair’s drop to 1.7725 and the 1.7670 levels. It should also be noted that the pair’s refrain to respect the 1.7670 can make it vulnerable enough to test 1.7590 and the 1.7530 supports.
Break of near-term descending trend-line provides additional strength to the AUDNZD in targeting 1.0845 level where the resistance-line of immediate ascending trend-channel can play its role. Given the channel-formation fails, the 1.0890, the 1.0910 and the 1.0945 are expected consecutive resistances that can entertain the Bulls. Meanwhile, dip below resistance-turned-support line of 1.0795 may recall the 1.0770 support, breaking which channel’s lower-line, at 1.0755, can threaten the pair’s downturn. Assuming the pair’s extended declines below 1.0755, the 1.0700, the 1.0690 and the 1.0655 could question its weakness.
Irrespective of the AUDCAD’s recent uptick from 0.9800, the pair has to surpass the 0.9860 hurdle in order to aim for 0.9910 and the 0.9930-35 resistance-area. In case if the prices rise above 0.9935, the 61.8% FE level of 0.9975 and the 1.0000 mark become important to follow. On the contrary, the 0.9780-75 horizontal-line and an upward slanting TL, at 0.9750, may limit the pair’s nearby downside, breaking which 0.9700 and the 0.9665-60 can take their stands. During the pair’s further declines beneath 0.9660, the 0.9620, the 0.9600 and the 0.9550 could be aimed if holding short positions.
This article was originally posted on FX Empire
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