AUD : Technical Forecast

(Sat, 24 Oct 2020).

AUD/USD TECHNICAL FORECAST -NEUTRAL

The Australian Dollar is trading within a bearish Descending Triangle against the US Dollar. This also follows a bearish ‘Death Cross’ after the short-term 20-day Simple Moving Average (SMA) crossed under the medium-term 20-day one. However, AUD/USD remains in a consolidative mode given that the floor of the triangle is holding. A breach under support (0.7006-0.7043) would open the door to resuming August’s top. Otherwise, a push above the ceiling of the triangle brings the August high back into the crosshairs.

AUD/JPY TECHNICAL FORECAST - NEUTRAL

Against the Japanese Yen, the Australian Dollar is facing a similar technical scenario. AUD/JPY is trading within a Descending Triangle after a ‘Death Cross’ formed between the 50-day and 20-day SMAs. However, the floor of the triangle has held and a bounce could lead to a retest of falling resistance. Otherwise, a drop through support (73.98 – 74.25) could open the door to resuming the late-August top. That would subsequently place the focus on the next zone of support which is comprised of June lows.

EUR/AUD TECHNICAL FORECAST - NEUTRAL

The Euro pushed to its highest since May against the Australian Dollar this past week. However, EUR/AUD struggled to maintain the push above 1.6498 – 1.6590 after a bearish Dark Cloud Cover candlestick pattern formed. With that in mind, the breakout appears to have been false and has placed the focus on rising support from September. If it holds, that could reinstate the focus to the upside as prices attempted to push through the 1.6773 – 1.6893 barrier. Otherwise, further losses exposes 1.6308 on the way towards lows from June.

GBP/AUD TECHNICAL FORECAST - NEUTRAL

The British Pound appears to be struggling to maintain its push against the Australian Dollar. This past week, GBP/AUD touched its highest since late May before resistance (1.8527 – 1.8407) held. That has left the pair facing rising support from September which may reinstate the focus to the upside. Otherwise, further losses exposes the 1.7848 – 1.7966 support zone on the way towards September lows. Taking out immediate resistance on the other hand place the focus on the December 2019 low towards 1.8996.

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