Breakout buyers north of 0.68 face considerable resistance
AUD/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
April’s 370-pip advance, together with May’s extension and June’s early rally has, as you can see, landed price within the parapets of supply fixed at 0.7029/0.6664, an area intersecting with a long-term trendline resistance (1.0582).
Regarding the market’s primary trend, a series of lower lows and lower highs have been present since mid-2011.
Daily timeframe:
Monday’s near-2% advance, sponsored by a waning buck and upbeat risk sentiment, crossed resistance at 0.6755 and shined light on notable supply coming in from 0.6883/0.6824. Additionally, we also crossed above the 200-day simple moving average, generally regarded as a bullish signal.
Also of note is the RSI punching into overbought territory.
H4 timeframe:
Monday elevated H4 price through supply at 0.6764/0.6738, liberating the commodity-exposed currency towards at least resistance found at 0.6812. Traders may also find use in noting the supply posted directly above resistance at 0.6858/0.6837.
H1 timeframe:
Partially altered from previous analysis -
Since last Wednesday, short-term technicals have been in the process of building an ascending triangle pattern between 0.6675 and 0.6567, regarded as a continuation pattern. The take-profit target is measured by taking the value of the base and adding this to the breakout point (yellow), seen at 0.6785.
As you can see, price breached the upper base of the noted pattern in the early hours of Monday and struck the pattern’s take-profit target amid US trade. In recent hours, though, we also witnessed 0.68 come under fire.
Structures of Interest:
Monthly supply at 0.7029/0.6664 is under attack, with monthly trendline resistance, an intersecting line, within close proximity. After crossing the 200-day simple moving average and daily resistance at 0.6755 on the daily timeframe, supply at 0.6883/0.6824 may make a show.
As price accelerated upside considerably on Monday, this, technically, represents a strongly overbought market. Breakout buyers above 0.68 must face H4 resistance at 0.6812, daily supply at 0.6883/0.6824 and monthly supply from 0.7029/0.6664. This is considerable resistance.
While the uptrend could continue through the said resistances, the fact a strong monthly supply is involved that merges with trendline resistance should be a concern.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
April’s 370-pip advance, together with May’s extension and June’s early rally has, as you can see, landed price within the parapets of supply fixed at 0.7029/0.6664, an area intersecting with a long-term trendline resistance (1.0582).
Regarding the market’s primary trend, a series of lower lows and lower highs have been present since mid-2011.
Daily timeframe:
Monday’s near-2% advance, sponsored by a waning buck and upbeat risk sentiment, crossed resistance at 0.6755 and shined light on notable supply coming in from 0.6883/0.6824. Additionally, we also crossed above the 200-day simple moving average, generally regarded as a bullish signal.
Also of note is the RSI punching into overbought territory.
H4 timeframe:
Monday elevated H4 price through supply at 0.6764/0.6738, liberating the commodity-exposed currency towards at least resistance found at 0.6812. Traders may also find use in noting the supply posted directly above resistance at 0.6858/0.6837.
H1 timeframe:
Partially altered from previous analysis -
Since last Wednesday, short-term technicals have been in the process of building an ascending triangle pattern between 0.6675 and 0.6567, regarded as a continuation pattern. The take-profit target is measured by taking the value of the base and adding this to the breakout point (yellow), seen at 0.6785.
As you can see, price breached the upper base of the noted pattern in the early hours of Monday and struck the pattern’s take-profit target amid US trade. In recent hours, though, we also witnessed 0.68 come under fire.
Structures of Interest:
Monthly supply at 0.7029/0.6664 is under attack, with monthly trendline resistance, an intersecting line, within close proximity. After crossing the 200-day simple moving average and daily resistance at 0.6755 on the daily timeframe, supply at 0.6883/0.6824 may make a show.
As price accelerated upside considerably on Monday, this, technically, represents a strongly overbought market. Breakout buyers above 0.68 must face H4 resistance at 0.6812, daily supply at 0.6883/0.6824 and monthly supply from 0.7029/0.6664. This is considerable resistance.
While the uptrend could continue through the said resistances, the fact a strong monthly supply is involved that merges with trendline resistance should be a concern.
כתב ויתור
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