Jump to content

Australia Dollar Technical Analysis: AUD/USD, EUR/AUD. Will Momentum Resume?


Recommended Posts

AUSTRALIAN DOLLAR, AUD/USD, EUR/AUD - TALKING POINTS

  • AUD/USD has steadied after a weakening period as it consolidates
  • EUR/AUD has moved back to the middle of a broad range after testing the high
  • AUD has mixed momentum for now. Will a trend emerge in AUD/USD or EUR/AUD?
 

AUD/USD Forex Technical Analysis – Downside Momentum Targeting .7363 - .7317

 

AUD/USD TECHNICAL ANALYSIS

AUD/USD accelerated toward the November low of 0.69913, but the move was rejected. That tick down saw a close below the lower band of the 21-day simple moving average (SMA) based Bollinger Band. The next day saw a close above that lower band, which then saw a rally unfold.

From there, AUD/USD appears to have established a short-term range between the recent low and high of 0.71108 and 0.71867 respectively.

The low of 0.71108 also coincides with the 10-day SMA which could provide support.

Looking at the SMAs, a bearish triple moving average (TMA) formation requires the price to be below the short term SMA, the latter to be below the medium term SMA and the medium term SMA to be below the long term SMA. All SMAs also need to have a negative gradient.

All the SMAs have a negative gradient, including the 10-day SMA. However, the 10-day SMA is below the price. This might suggest a pause in bearishness. Should the price fall below the 10-day SMA, it could trigger bearish momentum to unfold.

Excluding the 10-day SMA, any 3 other SMAs would meet the criteria for a bearish TMA.

Below 0.71108, support may lie at the pivot point of 0.70626 or prior lows of 0.69932 and 0.69913.

Above 0.71867, resistance on the topside might be at the 34, 55 and 100-day SMAs or the previous high of 0.73680.

AUD/USD CHART

 

EUR/AUD TECHNICAL ANALYSIS

EUR/AUD appears to have conflicting momentum signals as it lies between several simple moving averages (SMA).

On the topside, the price has stopped short of 10 and 100-day SMAs and they might continue to offer resistance.

Further up, the recent high of 1.61709 and previous highs in September of 1.61833 and 1.62347, are also potential resistance levels.

The last few days has seen EUR/AUD piece below the 200-day SMA, but it is unable to have a close below it. The 34 and 55-day SMAs lie just below the recent low of 1.57189. These SMAs and the recent low could provide support. A pivot point at 1.57457 may also provide support.

EUR/AUD CHART

Chart created in TradingView

 

Written by Daniel McCarthy, Strategist for DailyFX.com. 14th December 2021

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,643
    • Total Posts
      97,065
    • Total Members
      44,199
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Gaganpreet
    Joined 07/12/23 01:42
  • Posts

    • NZDUSD Elliott Wave Analysis Trading Lounge Day  Chart, 7 December 23 New Zealand Dollar/U.S.Dollar (NZDUSD) Day Chart NZDUSD Elliott Wave Technical Analysis Function: Trend Mode: corrective as red wave 4 Structure: red wave 4 of 3 Position: Black wave 1 Direction Next Higher Degrees:red wave 5 of 3 Details; red wave 4 of blue wave 3 is in play , after that red wave 5 will start  . Wave Cancel invalid level: 0.60536 The "NZDUSD Elliott Wave Analysis Trading Lounge Day Chart" dated 7 December 23, provides a comprehensive examination of the New Zealand Dollar/U.S. Dollar (NZDUSD) currency pair's price action within a daily timeframe. Employing Elliott Wave analysis, the report aids traders in understanding the ongoing trends, corrections, and potential future movements in the market. The designated "Function" of the market is identified as "Trend," indicating a primary focus on recognizing and capitalizing on the prevailing directional movement. Understanding the trend is crucial for traders aligning their strategies with the predominant market dynamics. The analysis characterizes the current market "Mode" as "corrective as red wave 4," signifying that the present phase is corrective within the context of the fourth wave in the Elliott Wave sequence. Corrective waves typically represent temporary counter-trend movements before the primary trend resumes. The primary "Structure" is labeled as "red wave 4 of 3," providing insights into the ongoing correction within the larger Elliott Wave structure. This information is essential for traders seeking to grasp the current phase within the broader market context. The specified "Position" is denoted as "Black wave 1," offering information about the current wave count within the broader Elliott Wave sequence. This aspect assists traders in understanding the market's position within the larger wave cycle. The directional guidance for "Next Higher Degrees" is projected as "red wave 5 of 3," indicating an expectation of the next impulsive wave within the overarching trend. This guidance is valuable for traders aiming to align their positions with the anticipated direction of the trend. In terms of "Details," the analysis notes that "red wave 4 of blue wave 3 is in play," signaling an ongoing corrective phase within the context of the third wave of a larger degree. The anticipation is that, following this correction, "red wave 5" will commence, representing the resumption of the overall trend. The "Wave Cancel invalid level" is identified as "0.60536," serving as a critical threshold. If the market reaches this level, it would invalidate the current wave count, prompting a reconsideration of the prevailing market conditions. In summary, the NZDUSD Elliott Wave Analysis for the Day Chart on 7 December 23, highlights a corrective movement labeled as "red wave 4 of 3." The analysis provides insights into the wave structure, position, expected next wave, and a crucial level for potential wave cancellation within the broader trend. Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!    
    • NZDUSD Elliott Wave Analysis Trading Lounge 4 Hour  Chart, 7 December 23 New Zealand Dollar/U.S.Dollar (NZDUSD) 4 Hour Chart NZDUSD Elliott Wave Technical Analysis Function: Trend Mode: corrective as red wave 4 Structure: red wave 4 of 3 Position: Black wave 1 Direction Next Higher Degrees:red wave 5 of 3 Details; red wave 4 of blue wave 3 is in play , after that red wave 5 will start  . Wave Cancel invalid level: 0.60536 The "NZDUSD Elliott Wave Analysis Trading Lounge 4 Hour Chart" dated 7 December 23, delves into the intricacies of the New Zealand Dollar/U.S. Dollar (NZDUSD) currency pair's price movements over a four-hour timeframe. Employing Elliott Wave analysis, the insights provided are crucial for traders seeking to decipher potential trends and corrections in the market. The analysis designates the market "Function" as "Trend," highlighting a predominant focus on identifying and capitalizing on the current market trend. Recognizing the trend is fundamental for traders aligning their strategies with the prevailing price movements. The identified "Mode" characterizes the market movement as "corrective as red wave 4," indicating that the present phase is corrective within the context of the fourth wave in the Elliott Wave sequence. Corrective waves typically represent temporary counter-trend movements. The primary "Structure" is labeled as "red wave 4 of 3," offering insights into the ongoing correction within the larger Elliott Wave structure. This information aids traders in understanding the current phase in the overall market context. The specified "Position" is denoted as "Black wave 1," providing information about the current wave count within the broader Elliott Wave sequence. This aspect helps traders gauge the market's position within the larger wave cycle. The directional guidance for "Next Higher Degrees" is projected as "red wave 5 of 3," indicating an expectation of the next impulsive wave within the overarching trend. This information is invaluable for traders looking to align their positions with the anticipated direction of the trend. In terms of "Details," the analysis notes that "red wave 4 of blue wave 3 is in play," signaling an ongoing corrective phase within the context of the third wave of a larger degree. The anticipation is that, following this correction, "red wave 5" will commence, representing the resumption of the overall trend. The "Wave Cancel invalid level" is identified as "0.60536," serving as a critical threshold. If the market reaches this level, it would invalidate the current wave count, prompting a reconsideration of the prevailing market conditions. To summarize, the NZDUSD Elliott Wave Analysis for the 4-hour chart on 7 December 23, reveals a corrective movement labeled as "red wave 4 of 3." The analysis provides insights into the wave structure, position, expected next wave, and a crucial level for potential wave cancellation within the broader trend. Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!    
    • Elliott Wave Analysis TradingLounge Daily Chart, 7 December 23, Binance/ U.S. dollar(BNBUSD) BNBUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Flat Position: Wave C Direction Next higher Degrees: wave (2) of Impulse Wave Cancel invalid level: Details: wave (2) may end at 224.0 and the price increase again in wave (3) Binance/ U.S. dollar(BNBUSD)Trading Strategy : Binance's recovery has been good, with five waves rising from the 202.8 level, giving us an overall bullish outlook. The correction is likely to end at the level of 222.6 and the price is entering another uptrend in wave 3. Binance/ U.S. dollar(BNBUSD)Technical Indicators: The price is below the MA200 indicating a Downtrend, Wave Oscillators a Bullish Momentum. TradingLounge Analyst: Kittiampon Somboonsod, CEWA Source : Tradinglounge.com get trial here!         Elliott Wave Analysis TradingLounge 4H Chart, 7 December 23, Binance/ U.S. dollar(BNBUSD) BNBUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Flat Position: Wave C Direction Next higher Degrees: wave (2) of Impulse Wave Cancel invalid level: Details: wave (2) may end at 224.0 and the price increase again in wave (3) Binance/ U.S. dollar(BNBUSD)Trading Strategy : Binance's recovery has been good, with five waves rising from the 202.8 level, giving us an overall bullish outlook. The correction is likely to end at the level of 222.6 and the price is entering another uptrend in wave 3. Binance/ U.S. dollar(BNBUSD)Technical Indicators: The price is below the MA200 indicating a Downtrend, Wave Oscillators a Bullish Momentum.    
×
×
  • Create New...
us