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AUDUSD settles back at 0.78s

Market Analysis

AUDUSD & AUDNZD, Multiple Timeframes

AUDUSD , H1 and Daily

The AUDUSD has settled back at 0.7800 after logging a near 0.7950 on Monday. The was consolidating on 20-Day MA line for the last 5 days, while, today has been trading below that. Based on this consolidation, a Daily Resistance level has been observed between 0.7940-0.7960, since pair did not manage go beyond that since August 4.Hence by considering today’s open below 20-DMA and also the general Downtrend since July peak, a Short position was taken with Entry at 0.7886. The decision was confirmed also by the creation of a hummingbird by Bollinger bands pattern, which indicates a bearish signal in the daily chart. A  single target was set at 0.7840, while Support has been set at 0.7940.

Meanwhile, in a lower time frame chart such as the H1, the pair broke multiple times this morning the 200-period MA, and was traded below that point. Hence an hourly entry was also taken with Target at 0.7870, and support level at 0.7905,  which is also the confluence of 20-period MA.

 

AUDNZD , H4 and Daily

A 3rd Intra-day entry was taken today at AUDNZD, in 4-hour chart. THe NZD can be consider as the weakest currency of the day , especially against  EUR and JPY as per our Traders Board provided online. THE AUDNZD has been lifted today 90 pips, exceeding May’s peak, at  1.0933. The pair is in an uptrend in August, while according to RSI indicator which is currently at 70, in the Daily chart, it seems that there is still some space upwards. Meanwhile in the 4-hour chart, 3 white soldiers have been noticed, since morning, while pair broke the last upfractal and it is still moving on the upper Bollinger Bands area.

Hence Long Position was taken in the 4-hour chart, with entry at 1.0935.  First Target was set at 1.0980  which is an intra-daily one, while a Daily target was set at 1.1015 based on ATR(14).

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Andria Pichidi

Market Analyst

HotForex

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