Forex in Focus: Aussie at key level of support

Share On Facebook
share on Linkedin

Today the Australian dollar continued falling against its US counterpart, hitting key support at 0.7450. The pair last touched this important level back in late September, as described in my previous Forex in Focus article here.

Looking at the hourly candle chart below, we can see the Aussie has been locked into a strong downtrend ever since the surprise US election result last week. Price action has been moving lower within a well-defined descending channel and now appears to be consolidating just above the level of support.

If we zoom out to the daily chart, we can see this significant move lower following Trump’s victory began within a key zone of resistance at around 0.7740. AUD/USD has tried to break through this level on no less than five occasions in the last four months, failing each time.

With the pair currently hovering around 0.7450, the big question now is where will it head from here? If support holds, as it did last time in September, we could see a move back up to re-test 0.7740. However, if the bearish post-election momentum has enough strength for a break to the downside, the next stop could be as low as 0.7380.

Faraday Research offers real time FX and Equity trade signals from qualified analysts. Click here to try us free.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211027 00:18:19