Australian Dollar, AUD / USD, AUD / JPY, AUD / CAD, GBP / AUD – Weekly Technical Outlook
AUD / USD – war
The Australian dollar increased its AUD / AUD losses last weekUSD withdrawal of the support zone 0.7445 – 0.7479. This follows a series of falling intersections, including between the 20-day and the 50-day Simple Moving Average (SMA). The second took place between 20- and 200-day SMAs. They seem to favor a negative technical bias. Nevertheless, the positive divergence in RSI remains. This indicates that the negative momentum is fading, which can sometimes precede a turn higher.
AUD / JPY – Neutral
The Australian dollar was against a lower exchange rate Japanese yen, but AUD / JPY remained limited within the support zone 81,323 – 81,987. The decline between 20-day and 50-day SMAs still offers a technical bias in the near future. However, the 200-day SMA is immediately under immediate support and may restore a broader focus. If not, falling through it would open the midpoint of the Fibonacci retracement to the lowest of October 79,476.
AUD / CAD – neutral
The Australian dollar continued to consolidate against the Canadian dollar last week, with AUD / CAD idling exceeding the support range of 0.9248 – 0.9294. The pair continues its downward trend, starting in February the descending channel leads lower. There may now be a bullish crossover between 20- and 50-day SMAs, opening the door to upward technical bias. This would then reveal a 100-day SMA. Otherwise, clearing support reveals a 38.2% Fibonacci extension at 0.9207.
GBP / AUD – bullish
The British pound last week’s gains against the Australian dollar, with GBP / AUD further confirming a break above the main resistance zone of 1.8453 – 1.8527. This has opened the door to reversing the dominant downward trend that has taken place for most of last year. A 123.6% Fibonacci extension was exposed at 1.8789. Turning down may focus on 20- and 50-day SMAs. Nevertheless, a negative divergence in RSI persists, warning caution.
– Written by Daniel Dubrovsky Strategist to DailyFX.com
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