AUDUSD Buyers Need a Close Above 0.6920 to Keep the Rally Alive

Written by Justin Bennett

Trusted by 100k monthly readers

Last Updated November 1, 2019

Forex trader since 2002

Written by Justin Bennett 

Forex trader since 2002

100k monthly readers

Updated November 1, 2019


The AUDUSD reached a key resistance area on Thursday.

I first wrote about this descending channel that extends from the December 2018 high on July 24.

At the time, we were trading the breakdown below 0.6960 with a target of 0.6750.

I also wrote about the potential for a higher AUDUSD in the October 5 Saturday Forex forecast.

Now that the pair is trading just below resistance, you might think that now is a good time to sell.

However, I’m not interested in selling AUDUSD at the moment.

While we could see a short-term move lower, October’s bullish engulfing candle hints at a push higher.

AUDUSDWeekly New
Descending channel on the AUDUSD weekly time frame

The AUDUSD is also above the 0.6860/80 area I pointed out on October 21.

Notice how buyers have stepped in at 0.6880 over the last 48 hours.

That said, it’s still going to take a daily close above the channel top near 0.6920 to keep the rally alive.

If buyers can secure a close above that 0.6920 region, we could see the Australian dollar trend higher toward 0.7030.

It’s difficult to see on the daily time frame, but a view of the weekly chart shows how the 0.7030 area has influenced the AUDUSD since October 2018.

The 0.7030 level is also the 50% retracement of the descending channel that began last December.

Alternatively, a daily close below 0.6860/80 could trigger a move lower, perhaps into the next key support at 0.6810.

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AUDUSDDaily New
AUDUSD testing key resistance at 0.6920
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Justin Bennett - founder of Daily Price Action

About the author

Justin Bennett started trading in 2002, and let's just say it was a bumpy ride. But in 2010, he had his "aha" moment once he ditched the indicators and focused 100% on price action. Justin has built a following of 100,000+ monthly readers and taught thousands of traders using his simple, no-nonsense approach. He's been highlighted as a top trader by Stocks and Commodities Magazine and regularly featured by Forex Factory next to publications from Bloomberg and CNBC. ...Read More


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