In our previous analysis on 16th Sept, we published that Aussie Dollar made an attempt on 9th Sept from our major price action 0.7343 towards exponential moving average 200 on daily chart but failed and the dovish momentum drove the pair below our resistance turned support and 61.8% fibb retracement level on the intraday time frame. Adding to that, according to the market structure and completion of bullish correction on the daily chart which ended at exponential moving average 200, provided us a closing below the upper trend line to the bullish channel, would target 50% fibo at 0.7140 as its next destination. From the current market price and formation we can see that the Aussie Dollar has followed the footsteps in accordance to how we projected in our previous analysis. During Tuesday's trading session, the Australian Dollar declined by 57 pips or 0.78% against the US Dollar. The currency pair was pressured lower by the exponential moving average 50 in one hour time frame on Tuesday. Everything being equal, the AUDUSD exchange rate could continue to edge lower in a descending channel pattern during the following trading session. The potential target for sellers will be near the 0.7180 - 0.7130 area.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The People's Bank of China's (PBoC) decision to inject short-term cash provided a boost to risk sentiment and AUD capitalized on improving market mood. As of writing, the pair was consolidating its daily gains at 0.7250, where it was up 0.2% on a daily basis. Some follow-through selling will be seen as a fresh trigger for bearish traders and turn the AUD/USD pair vulnerable. The next relevant support is pegged near the 0.7130 level, below which the downward trajectory could further get extended towards challenge YTD lows, around the 0.7100 round-figure mark touched on August 20.

On the flip side, the overnight swing highs, around the 0.7280 zone, now seems to act as immediate resistance. This is closely followed by the top boundary of the mentioned channel, currently around the 0.7300 mark. A convincing breakthrough will negate the negative bias and trigger some near-term short-covering move towards the 0.7345-50 region.

AUDUSD

Sep 22 2021