AUD/USD price analysis: building a bearish Gartley

AUD/USD price analysis: the intraday outlook is mildly bullish. We look at this as an opportunity to get short for a larger correction lower

AUD/USD price analysis                                 

Market highlights from the last week

Wednesday June 10: risk appetite also deteriorated sharply as markets had priced in a strong recovery and adopted a more sober attitude following the Fed rhetoric

Thursday June 11: commodity currencies were undermined by weaker risk appetite during Thursday with sharp overall losses.

Friday June 12: CFTC data recorded only a small decline in short non-commercial Australian dollar positions in the latest week, maintaining the potential for short covering

Monday June 15: The Reserve Bank of Australia minutes stated that monetary support will be needed for some time, but it was slightly more optimistic over the outlook 

Tuesday June 16: commodity currencies also faded as the US currency recovered ground, although selling was limited with buying in early Europe on Wednesday

AUD/USD price analysis

Let us have a look at the technical viewpoint: 

Monthly: traded to a multi-year low of 0.5506 in March. We have seen two months of net gains in April and May. The trend of lower lows at 0.6920. 

Weekly: previous resistance seen at 0.7032 (week of December 30). Previous support located at 0.6670 (week of September 30)

A screen shot of a computer
Description automatically generated

Daily: mixed trading for the last five trading days. We can note spikes in both directions highlighting investor indecision. 

What is your sentiment on AUD/USD?

0.67960
Bullish
or
Bearish
Vote to see community's results!

Intraday four-hour: a move to the 78.6 per cent pullback level at 0.7003 (from 0.7062-0.6776) will form a bearish intraday Gartley formation. We have a previous swing high located at 0.7012. This should act as a substantial barrier. The target level for this pattern is 0.6700. 

Outlook: the intraday outlook is mildly bullish. However, we look at this as an opportunity to get short for a larger correction lower

Possible trade setup: 

Action: selling at 0.7000

Stop: 0.7050

Targets: 0.6700 and 0.6670

Potential return on risk to first target:  R6 (reward 300 / risk 5)

Risk Warning - Your capital is at risk - Losses can exceed deposits

Trading spot foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. If you are in any doubt about investment or the mechanics of such products, you should seek independent financial advice

Australian Dollar / US Dollar
Daily change
0.67939
Low: 0.67689
High: 0.68248
The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image