28, November 2016

AUD/USD (a 4-hour chart)

General overview

Positive sentiment around base metals, especially ore hellped the Aussie to strenghen on Friday.

Current situation

The pair extended its near-term upward trajectory and formed a higher high on Friday. The Australian dollar pierced the level 0.7450 but failed to reclaim it. The price edged lower right after the test and stayed around 0.7450 till the NY session open. The pair retreated from the daily high and returned to the 0.7400 region during the NA session. The price struggled with the bearish 50-EMA in the 4 hours chart. Even though the price broke the moving the 50-EMA slowed down its growth. The moving averages extended their declines in the 4 hours chart.  The resistance is at 0.7450, the support comes in at 0.7400.

MACD entered the positive area. RSI grew and approached the overbought levels.

Trading recommendations

A break above 0.7450 might force the pair to resume its upward trajectory towards 0.7500. On the other hand if the AUD/USD stays below 0.7450 the price may move down and negate its recent gains. In this scenario sellers will lead prices to 0.7350 and 0.7300.