Daily Price Action
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AUDUSD Bulls Retake 0.7635, Target 0.7730

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On December 1 I mentioned the AUDUSD. The 0.7635 level stood out as a key hurdle that buyers needed to overcome in order to push prices higher.

However, they failed to do it on the 1st of December and again on the 5th. The latter actually formed a bearish pin bar from 0.7635, sending the pair 150 pips lower.

But all of that changed on Thursday. The 0.7663 close put the pair 28 pips above the key 0.7635 handle. With this in mind, any retest of the 0.7635 area as new support will likely encounter an influx of buying pressure.

Note that the AUDUSD is also bouncing from an established trend line from the 2015 low.

AUDUSD trend line on weekly chart

I’ll be one of those watching for bullish price action from the 0.7635 area. It won’t be until next week, though, given that we just entered the final 24 hours of the current trading week.

As for resistance, the next key level comes in at 0.7730. The area served as a pivot between October 6 and November 2. It also played a role in capping the mid-June advance. Beyond 0.7730 we have 0.7820 followed by 0.7955.

Alternatively, a daily close at 5 pm EST back below 0.7635 would negate the bullish scenario I just described.

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AUDUSD key support and resistance levels

Leave a Comment:

7 comments
Howard says

Loving your lines Justin…have put this one on my watch list. Thanks!

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ARUMUGAM says

Thank You…..

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Alan says

All a bit strange… in the face of parity between FED and RBA rates the AUD should have become less attractive. So whether it was Yellen’s less than enthusiastic support of the Trump tax plan or a shallow interpretation giving a positive spin on the Australian employment data I don’t know but my feeling is both are temporary effects and the support at 0.7635 will be broken at the next test… which is. of course, not a basis for placing a trade until a suitable setup forms.

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    Dimitris says

    Zooming out in the weekly chart there is an ascending triangle that has already been broken out on the upside last July.
    0.90 is a possible target in 2018 even with additional rate hikes from the FED.

    Reply
Dirk Groenewald says

Thanks for all your effort…..

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munawar ali arbab says

While the trend is already downward having crossed confirmation
candlestick showing (suppose) audusd as 0.9780, where should I put Short option so that my trade is activated?

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Doel says

Thanks for sharing your daily effort and your accurate analysis.. It seems that you become my autochartist.

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