AUD/USD Continues its Impressive Rally
September 5, 2019 9:50 PM
AUD/USD continued its move off the recent lows to increase its gains to over 1.5%.
AUD/USD continued its move off the recent lows to increase its gains to over 1.5% over the last three days moving back towards the center of the downward sloping channel. The commodity currency began its rally after Australia released its Q3 GDP, which came in as expected. In addition to the economic data, the ongoing US-China trade war tensions have been easing as potential meetings were discussed for mid-September between the two rival countries.
The pair traded right into the 38.2% retracement of the July 19th highs to the September 13th lows at 0.6356. There is also horizontal resistance here as it is close to the daily candle low from June 18th. The next area of resistance is the 50% retracement of the previously mentioned move and horizontal resistance, which comes in around 0.6910/0.6930. Above that, resistance comes in at the top of the channel near 0.7000.
Source: Tradingview.com, FOREX.com
On a four-hour chart, the RSI is overbought and beginning to turn down. This typically indicates that the move may be a bit overdone and a pullback is near. On the same shorter-term timeframe, AUD/USD is also trading back towards the top of a trading range dating back to August 1st. There isn’t much support below until 0.6677.
Source: Tradingview.com, FOREX.com
Strong resistance above current levels of 0.6813 makes this a prime candidate for at least a short-term pullback. Stops may be placed about the horizonal trendline and 38.2% retracement level at 0.6828. A target possible could be the previous lows of 0.6677.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.