Forex Trading: AUDUSD Technical Analysis – January 29, 2020
The AUD has dropped with the red candle tag appearing against the US$ on the graph. The downward trend brings AUDUSD’s price to under 0.6800. When we looking at the graph then we come to realize that from the beginning of the month AUD’s self suffered a very tough time. Good news from the U.S. doesn’t allow the market to go forward. Even though it rises yesterday, but today’s poor drops, further declined it. Considering the technical bias, it remains bearish, because of the lower low wave printed on the graph below, in the last downside move.
AUD/USD: Technical Analysis
AUDUSD now appears on the graph below, at 0.6750. It is blessed with support levels, and will soon raise the price from the specified level with the aid of the support levels. The price has the support of the trendline at 0.6730, ahead of the psychological level support of 6700, and then at 0.6600, there is the major horizontal support.
On the other hand, the price may also face resistance levels as it goes on, that other than unfavorable news these resistance levels may also become the obstacle to price growth. Immediately above the price, the trendline resistance is passing at 0.6752, afterward at the 61.8% Fib level, there is the resistance of 0.6796, and then at 0.6851, the major horizontal resistance stands.
US Services Purchasing Managers Index (PMI)
Basically US news played role in depreciation of AUDUSD, the US Services Purchasing Managers Index (PMI) improved from 52.8 to 53.2, as it measures market conditions in the services sector which control a large proportion of total GDP, PMI services are an important indicator of the overall economic situation in the United States. An outcome above 50 signals is bullish for the USD.
Trying to avoid trading at this stage could not be a good decision since the graph above shows the negative perception of the AUDUSD with fewer support levels and more resistance levels.