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Technical Analysis:  Australian Dollar Tested 0.7835 Fell Back to 0.7700

Posted by Chris Advincula on Apr 22, 2016 4:23:09 PM


(Apr. 22 Friday) The 8-hour chart shows the australian dollar has maintained a good uptrend from 0.7100 (Feb 29) up to the current 0.7835 high (Apr 21) yesterday. There are two significant pullback retracements which shows a similar 200-pip pattern: On Mar 16-24  the aussie fell from 0.7675 to 0.7475. The aussie  fell from 0.7725 to 0.7500 on Mar 30-Apr 7. This 200-pip pullback pattern may repeat itself again after testing the 0.7835 high in the absence of a follow through buying action today.

The 10 minute intraday chart below shows the aussie dollar falling from the high of 0.7835 to 0.7690 (-145 pips) enroute to the 0.7635 territory for the 200 pip pullback pattern for a third potential attempt in the short term run. The 14-day RSI (relative strenght index) shows a toppish overbought level at 70 and has eased lower to 53.37.

The 14 DMA rebounds from 0.7550 to 0.7775 (Apr 11)  while the 30 DMA broke the 0.7600 resistance on Apr 4 and rose to 0.7710. The Fibonacci 23.60% retracement at 0.7660 could be the next near term target price on this pullback scenario. The 14 DMA support at 0.7553 (38.20% Fibo retracement) and 0.7700 as shown on the 10 minute intraday chart.

Topics: AUDUSD, technical analysis, Australian Dollar


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