Australian Dollar, AUD / USD, AUD / JPY, AUD / CAD, GBP / AUD – Weekly Technical Outlook
AUD / USD – war
The Australian dollar extended its decline against the dollar last week US dollarwith AUD /USD further confirming the difference below the 200-day simple average (SMA). The decline between short-term 20-day and 50-day SEAs also offers a negative bias. However, immediate support ranges from 0.7445 to 0.7479. Indeed, the positive divergence in the RSI indicates that the negative momentum is fading. This can sometimes precede a turn higher. If not, the couple may target lower levels from September.
AUD / JPY – Neutral
The Australian dollar was also against a lower exchange rate Japanese yen last week, although AUD / JPY cut some losses on Friday. This meant that key strength 81.762 – 82.427 remained in the game and is likely to be key next week. Although there is still a decline between 20-50 day SMAs, the 200-day equivalent may still maintain a dominant focus. There is also a positive divergence in RSI, which may precede a turn to short-term SMAs. Extending losses may focus on the Fibonacci retracement center 79.4765.
AUD / CAD – neutral
AUD / CAD will continue to trade on a consolidated basis, with the Australian dollar idling above the support zone of 0.9248 – 0.9294. Nevertheless, 50- and 100-day SEAs continue to offer negative bias. Moreover, the pair appears to be trading in a declining channel since February, which may continue to offer a downward trend. A positive RSI discrepancy may persist, warning that the margin may be a turnaround. Otherwise, clearing the keychain reveals a 38.2% Fibonacci extension value of 0.9207.
GBP / AUD – bullish
The British pound may increase profits against the Australian dollar after GBP / AUD was able to rise above the resistance zone of 1.8453 – 1.8527. Nevertheless, the negative divergence in RSI remains. This may be a warning that the cards may have a lower rotation. However, short-term 20- and 50-day SMAs offer a positive bias. They may come into play as a key support in the event of a lower turn, which may restore focus. Deleting immediate resistance would reveal 123.6% Fibonacci extension at 1.8789.
– Written by Daniel Dubrovsky Strategist to DailyFX.com
Use the comments section or below to contact Daniel @ddrovrovskyFX Twitter