• Contact Us
  • Homepages
Most Forex
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
  • For Beginners
  • Strategies
  • Technical Analysis
  • Product Reviews
  • News
  • Videos
No Result
View All Result
Most Forex
No Result
View All Result
Home Technical Analysis

Aussie Plummets into Critical Support

Forex Tips by Forex Tips
October 20, 2020
in Technical Analysis
0
AUD/JPY, AUD/USD Breakout Ahead of September RBA Meeting
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


Australian Dollar Technical Price Outlook: AUD/USD Weekly Trade Levels

  • Australian Dollar technical trade level update – Weekly Chart
  • AUD/USD rebounds off key technical pivot zone
  • Aussie testing key inflection zone at 7016 – risk for further losses sub-7329

The Australian Dollar is up down more than 0.3% against the US Dollar this week with AUD/USD now testing a critical inflection zone for the fifth time this year- all five instances produced a move of no less than 3.3% off this threshold and we’re looking for a reaction here. These are the updated targets and invalidation levels that matter on the AUD/USD weekly price chart. for an in-depth breakdown of this Aussie trade setup and more.

Starts in:

Live now:

Oct 26

( 12:10 GMT )

Live Weekly Strategy Webinars on Mondays at 12:30GMT

Weekly Scalping Webinar

Register for webinar

Join now

Webinar has ended

Australian Dollar Price Chart – AUD/USD Weekly

Australian Dollar Price Chart - AUD/USD Weekly - Aussie Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; AUD/USD on Tradingview

Notes: In my last Australian Dollar Weekly Price Outlook we noted that Aussie had, “rebounded off a key inflection zone and the immediate focus is on possible topside exhaustion on this stretch early in the month… the risk remains tilted to the downside while below 7295 with a break / close below 7016 needed to suggest a deeper Aussie correction is underway.” AUD/USD registered a high at 7243 before reversing sharply lower with the decline testing key support again today at 7016/42– a region defined by the 2020/2019 objective yearly opens.

We’re looking for a reaction off this threshold with the immediate decline vulnerable while above. Monthly open resistance stands at 7160 with a breach / weekly close above the 2019 swing high / May 2017 low at 7295–7329 needed to mark resumption of the broader uptrend. A break / close below 7016 would keep the focus lower towards the 2016 low / 100% extension at 6827/35 backed by more significant weekly support at the 2008 low-week close / 2019 low / 38.2% Fibonacci retracement at 6660/85.

AUD Forecast

AUD Forecast

Recommended by Michael Boutros

Download Our Latest Quarterly Aussie Price Forecasts!

Bottom line: The Australian Dollar is once again testing a critical support zone and we’re looking for inflection this week. From a trading standpoint, a good zone to reduce short exposure / lower protective stops – recoveries should be limited to the monthly open IF price is indeed heading lower. Ultimately, a larger correction may offer more favorable entries before resumption of the late-March rally. Review my latest Australian Dollar Price Outlook for a closer look at the near-term AUD/USD technical trade levels.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Australian Dollar Trader Sentiment – AUD/USD Price Chart

Australian Dollar Trader Sentiment - AUD/USD Price Chart - Aussie Outlook - Technical Forecast

  • A summary of IG Client Sentiment shows traders are net-long AUD/USD – the ratio stands at +1.18 (54.05% of traders are long) – neutral reading
  • Long positions are 5.97% higher than yesterday and 31.77% higher from last week
  • Short positions are1.20% lower than yesterday and 22.60% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUD/USD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger AUD/USD-bearish contrarian trading bias from a sentiment standpoint.



of clients are net long.



of clients are net short.

Change in Longs Shorts OI
Daily 9% -13% -2%
Weekly 36% -30% -3%

—

Key Australia / US Data Releases

Key Australia / US Data Releases - AUD/USD Economic Calendar - Aussie Event Risk

Economic Calendar – latest economic developments and upcoming event risk.

Previous Weekly Technical Charts

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex





Source link

Share76Tweet47

Related Posts

US Dollar Breakouts Search for Momentum: USD/SGD, USD/IDR, USD/PHP, USD/THB

by Forex Tips
March 4, 2021
0

US Dollar, USD/SGD, USD/IDR, USD/PHP, USD/IDR – ASEAN Technical AnalysisUSD/SGD eyeing 100-day SMA as it trades within a Bearish...

Technicals Point to Higher Prices

Gold Trading Soft, Silver Price Trying to Hold Important Support

by Forex Tips
March 4, 2021
0

Gold & Silver Price OutlookGold trading near the bottom of a would-be long-term bull-flagSilver price trading on March trend-line,...

Dow Jones, DAX 30, FTSE 100, S&P 500 Forecasts for the Week

Monthly Forex Seasonality – March 2021: ‘Dollars’ Mixed but Gold, Stocks Favor Weakness

by Forex Tips
March 3, 2021
0

March FX Seasonality Overview:In recent years, March has produced EUR/USD gains, losses by USD/JPY, gold, and stocks. It’s a...

Brexit Latest: British Pound Rallies as EU-UK Agreement Nears

British Pound Forecast: Digesting Gains Around Spring Budget

by Forex Tips
March 3, 2021
0

British Pound Outlook:After a strong run higher, the British Pound may be due for a period of pullback, if...

Canadian Dollar Forecast: Loonie’s Wings Clipped?

by Forex Tips
March 3, 2021
0

Canadian Dollar Outlook:Canadian Dollar Flies Through TurbulenceThe Canadian Dollar was hobbled last week, nearly falling through key technical levels...

Load More

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos
Forex Pulse Detector

Categories

  • Crypto Strategies
  • Currency
  • For Beginners
  • Forex News
  • Forex Trading Tips & Strategies
  • Investment
  • Technical Analysis
  • Videos

Newsletter

  • Home
  • Contact
  • Privacy Policy
  • Store

© 2018 Forex Blog

No Result
View All Result
  • Contact Us
  • Homepages

© 2018 Forex Blog.