Australian Dollar versus US dollar has accurately followed the projected direction as published in our previous analysis on 27th Aug - anticipating that the pair will be rallying towards 0.7426. The hawkish expectations were based on the market move above 50% fibb and flirting with 0.72000 price action, we were determined that the bullish correction of higher degree will be completed near 61.8% fibb retracement level i.e 0.74030. Also AUDUSDhad entered our bearish channel again by breaking above 0.7176 and establishing a hawkish structure between 50% and 61.8% fibb retracement level. In weekly time frame a sharp reversal was witnessed from 70 in relative strength index - depicting a denial of testing oversold conditions on intraday chart and 50% fibb became a strong factor for the bullish move.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

AUDUSD rallied higher through the first half of the European session and reached for 7 weeks high, around the 0.7435-40 region. The U.S dollar weakness assisted the AUD/USD pair to build on its recent strong rebound from the 0.7100. Apart from this, the risk-on environment was seen as another factor that provided an additional boost to the perceived riskier aussie. From a technical perspective, the overnight sustained move beyond 50-day SMA for the first time since June turned out to be a key trigger for bullish traders. A subsequent strength above the 0.7400 mark and the 0.7420-25 region might have already set the stage for an extension of the appreciating move. On weekly chart the pair is reaching for exponential moving average 50 and exponential moving average 200 in daily; this indicates that 0.7500 is the upcoming destination from where AUDUSD will take a temporary bearish reversal to retest the major resistances turned supports to continue it bullish rally for further gains. 

AUDUSD

Sep 03 2021

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