AUD / USD technical outlook
- AUD / USD trading within a downtrend / channel
- There is still room to run down to the big 7,000 levels…
- If the obstacle can keep the lid on the current rise
Australian dollar technical forecast: downtrend testing
AUD/USD remains within the stuck channel, which can be seen to reach a significant overall level of 7000. For this to happen, however, we need to see that the resistance persists here as it is thoroughly tested.
The channel line and the lowest end of the month-long range that ended in the middle of this month are around current levels. This could be a good risk / reward opportunity for future shorts, should we see that the momentum here will soon be up and down.
Should a weakness emerge soon, the downside is the recent low of 7105, but the higher target remains at 7000 lines. This is not just a psychological level, it was confirmed several times in 2019 and 2020 (see the weekly table below).
At this time, it seems sensible to look for a short entry using the correct pricing above. Longs are not attractive at the moment because strength is inherently resisting.
AUD / USD daily schedule
AUD / USD weekly chart
Resources for Forex traders
Whether you are a new or experienced trader, we have several resources to help you; tracking indicator trader mood, quarterly trading forecasts, analytical and educational webinars is held daily, trading instructions which help you improve your trading operations and is designed specifically for those who do Forex new.
– Written by market analyst Paul Robinson
You can follow Paul on Twitter at@PaulRobinsonFX