AUD/USD price analysis: hold within a bullish channel
AUD/USD price analysis: although the anticipated move higher is corrective, it does offer ample reward against risk today
Market highlights from the past week
Friday June 19: the Australian dollar gradually lost ground on Friday amid a stronger US currency and less confident risk tones with AUD/USD weakening to 0.6830
Monday June 22: risk appetite dipped briefly after a US adviser called the US-China trade deal over, but there was a quick reversal after a swift denial
Tuesday June 23: AUD/USD strengthened to highs around 0.6975 before correcting slightly amid reservations over the underlying situation with China
Wednesday June 24: Australian data registered a record decline in job vacancies in the three months to May and the vulnerability in risk appetite continued to unsettle the Australian currency
Thursday June 25: risk appetite stabilised during Thursday despite underlying coronavirus concerns as new US cases hit a record high.
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)
Daily: mixed trading for the past 12 days. The RSI (relative strength index) is close to 50 (mid-point) highlighting we are non-trending.
What is your sentiment on AUD/USD?
Intraday four-hour: trading within a bullish channel formation. Trend line resistance is located at 0.7033. Support at 0.6838. Previous swing high is seen at 0.7042.
Outlook: although the anticipated move higher is corrective, it does offer ample reward against risk today
Possible trade set-up:
Action: buying at 0.6859
Potential return on risk to first target: R5.3 (reward 161/risk 30)
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