AUDUSD Trying to Maintain Itself Above 0.7100

Launch Chart
farhan fazal
AUDUSD
·
Dec 05 2021
Take Profit +2.09%
Holding time 35d16hr
0.71420
Entry price
0.72910
Take profit price
snapshot
1
MARKET FORECAST :

The AUD/USD pair is in free fall, trading at  0.7018 at the time of writing, its lowest since November 2020, and likely to end the week nearby. The American dollar strengthened on the back of risk aversion and chances of further tightening in the US. In times of turmoil, investors run to the greenback no matter what. And uncertainty was the main theme these past days, following the announcement of a new coronavirus strain, reported initially in South Africa on November 25. Australian data was mixed as the country slowly moves away from lockdowns, yet also reflecting the economic struggle. October Building Permits plummeted 12.9% MoM, although the Q3 Gross Domestic Product contracted by 1.9% QoQ, better than the -2.7% expected.
The upcoming week will start with Australian publishing November TD Securities Inflation. The Reserve Bank of Australia has already noted that higher inflation won’t affect their monetary policy and that a rate hike before 2024 is out of the table for now.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The AUD/USD pair is down for a fifth consecutive week, without signs of changing course. The weekly chart shows that it has extended its decline below the 100 and 200 SMAs, both converging around 0.7190  while the 20 SMA extended its slide above the longer ones. Meanwhile, technical indicators head firmly lower within negative levels, and with the RSI just now approaching oversold readings.
The pair is oversold on the daily chart, although technical indicators maintain their firmly bearish slopes, despite being at extreme levels. At the same time, the pair is developing below a firmly bearish 20 SMA, which stands over 200 pips above the current level.
An immediate support level comes at 0.7000, followed by 0.6960. A break below the latter exposes the 0.6900 figure. Sellers are now aligned around 0.7100, the first resistance level, followed by 0.7140.