AUDUSD Daily – Demand remains strong

Theunis Kruger

Written on 28/04/2020 by Theunis Kruger, FX Trainer at FXTM

The price of AUDUSD, on the D1 time-frame, was in a prolonged downtrend until March the 19th when a lower bottom was recorded at 0.55073. The resultant attractive price caught traders’ attention and buyers started aggressively entering the market with long positions.

After the bottom was reached at 0.55073, a possible price reversal was confirmed when the market pushed through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke the zero baseline into bullish territory.

The reversal was further supported by a higher bottom and a new bullish impulse wave that formed during the upward market advances.

A possible critical resistance level formed when a top was recorded on April the 14th at 0.64443. Sellers capitalised on this and tried to push the market lower. However, after forming another higher bottom on April the 21st at 0.62532, buyers again overcame the negative sentiment and demand caused the price to rush upwards.

On April the 27th, the AUDUSD pair broke through the critical resistance level at 0.64443, and three possible price targets were calculated from there. Applying the Fibonacci tool to the top of the resistance level at 0.64443 and dragging it to the higher bottom at 0.62532, the following targets were considered. The first target is estimated at 0.65624 (161 %). The second price target is calculated at 0.67535 (261.8%), and the third and final target is projected at 0.70627 (423.6%).

If the 0.62532 support level is broken, the anticipated price targets are annulled.

As long as the price continues making higher tops and bottoms, thus confirming that an uptrend is in place and demand is overcoming supply, the outlook for AUDUSD pair on the Daily time-frame will remain bullish.



For more information, please visit: FXTM


Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Theunis Kruger

Latest news

AUD/USD Pair Dips 0.45% in Markets, COVID Panic Grips
The US dollar continued a week of surges in lots of its key pairs after the coronavirus pandemic placed itself firmly back on the agenda. Read more
EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
The pair containing the single European currency and the British pound has been closely watched in recent weeks. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
#2 Your capital is at risk Founded: 2012 Global Forex Broker
Number One Broker
Best Trading App Visit broker
#3 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker

    Forex Fraud Certified Brokers

    ATFX Logo
    FXTM Logo
    XM Logo
    skilling logo
    Oinvest Small Logo
    OctaFX Logo
    LegacyFX Small Logo
    HYCM Logo
    Oanda Small Logo
    Plus500 Small Logo Logo
    BlackBull Markets Small Logo
    IQ Option Logo
    VantageFX Small Logo
    City Index Logo
    Exness Small Logo