Australian Dollar versus US dollar has taken a shoot from the 0.7170 price action that acted as a strong support zone in shape of 50% fibo retracement level providing a hawkish reversal to the pair and preventing the Aussie Dollar from any further losses against the US Dollar. AUDUSD also broke out from our upper trend line to bullish channel and entered into the Ichimoku cloud on the daily chart while struggling against the exponential moving average 50 in the daily time frame and 61.8% fibo level acting as a near by strong resistance to smash the Aussie Dollar lower again. However, in the four hourly time frame, AUDUSD has broken above the exponential moving averages 50 and 200 - along with stepping above the ichimoku cloud but multiple technical factors are not letting the pair to advance for further gains and near by bearish reversal might be witnessed if AUDUSD failed to break above 0.7380 - 0.74000.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Bulls need to wait for a sustained move beyond the 0.7315-20 supply zone before positioning for any further gains. The AUD/USD pair might then surpass the 0.7365 intermediate hurdle and reclaim the 0.7400 mark. The momentum could get extended towards mid-0.7400s en-route September swing highs, near the 0.7475-80 area. On the flip side, the 0.7225-20 horizontal zone now seems to have emerged as immediate strong support for the AUD/USD pair ahead of the 0.7200 mark. A convincing break below will shift the bias in favour of bearish traders and set the stage for a fall towards challenging YTD lows, around the 0.7100 round-figure mark touched on August 20.

AUDUSD

Oct 07 2021