At a crossroad
The Australian Dollar (AUD) is currently stuck at a crossroad at the moment.
Which way will the AUD take?
The AUD is currently sitting just above its 50-day SMA and also its ST uptrend channel. However, it remains below the LT resistance trend line and also its 200-day SMA.
A strong move to below the channel support at 0.7100 would be a good warning that the LT downtrend is continuing while a close below 0.7017 would confirm that the next leg down to below 0.6896 is underway, targeting 0.6650-0.6720.
If the bulls can lift the AUD to above 0.7385 would likely open the door for a test of the downtrend line and 200-day SMA.
Above those resistance levels would likely take prices up to 0.7600-0.8000 next.v
The next few weeks would likely give us a better idea which way the AUD is heading next.
If pushed to pick a side, we would go with the longer term trend, which is Down with a stop placed above 0.7385. (Read Report)
Source : CIMB Research
Labels: Forex, Technical Analysis