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Technical Analysis: AUD/USD Resistance at 0.7750; Consolidation Levels

Posted by Chris Advincula on Feb 24, 2017 7:02:10 AM


(Feb 24 Friday)  The Australian Dollar shows resistance at 0.7750 on the 8 hour chart. The aussie has shown a good rebound from 0.7150 (Dec 26) to the present levels of 0.7745 - 0.7625 range. These would appear to be a consolidation-to-pullback correction if it fails to cross this significant 0.7750 level. Notice the path of the 14 day RSI (relative strength index), where the RSI tops have decline from 75 to 62, despite the fact that the spot level of aussie rose from 0.7600 to 0.7745. This denotes weakness in the 14 day RSI where the current level is not at 50.27, which could mean that a pullback correction is due fairly soon.

The 14 and 30 day moving average have converged at 0.7350 at 0.7675 which shows little disparity and meets resistance at these toppish levels. Before the pullback correction happens, there seems to be a consolidation due at this stage in time. The pullback retracement could be at the first Fibo retracement support at 0.7537 (61.80%). 

Topics: AUDUSD, technical analysis, Forex


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