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

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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.

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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AUDUSD testing key resistance at 0.6920

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Justin Bennett says

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said says

thanks

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    Justin Bennett says

    You’re welcome.

    Reply
EMEKA CHIKA ISIGUZO says

Please what is your view of AUDJPY and its direction for next week. I will really appreciate your view.
Thank yhou.

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    Justin Bennett says

    I won’t be posting about it anytime soon on this site, but feel free to join the member’s area where we discuss dozens of pairs including AUDJPY.

    Reply
Marshal says

Your forecast is really intetesting

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Marshal says

Real great

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Brad says

Not to mention, if you pull a fib off the weekly chart from the cycle high on 7-14-19 candle and the low 9-29-19 candle you’ll see current candle has now probed the 61% fib level and pulled off slightly. Not a buy yet, and not a sell yet either, so we patiently wait on this one.

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Mr HA says

thanks you so much

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Collins says

What is the mode of payment if I want you to be my life mentor.

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