23, November 2016

AUD/USD (a 4-hour chart)

General overview

The Australian dollar strengthened on the back of Assistant Governor Kent upbeat speech on Tuesday. Moreover, high commodity prices helped the AUD/USD to recover.

Current situation

The AUD extended its recovery and broke the psychological 0.7400 barrier. Buyers had no strength to push prices higher and stayed around their recent high during the day. The price broke the 50-EMA and tested the 100-EMA in the 1 hour chart. The 50-EMA is neutral, while the 100 and 200 EMAs maintained their bearish slope. The resistance is at 0.7400, the support comes in at 0.7350.

MACD grew which points to sellers’ positions weakening. RSI consolidated within oversold area.

Trading recommendations

Despite the recent growth the overall structure is firmly bearish. If the level 0.7400 holds the pair may soften to the multi-month lows at 0.7300. Should the pair consolidate above the level and the AUD may extend its gains to 0.7450.