AUDUSD Daily – The bulls might just come out to play

Written on 15/02/2022 by Theunis Kruger, FX Trainer at FXTM

 AUDUSD on the Daily time frame had a short downtrend until a last lower bottom was reached on 28 January at 0.69676.

After the lower bottom, the bulls started coming out of hiding with the price breaking through the 15 and 34 Simple Moving Averages and the Momentum Oscillator gravitating towards bullish territory.

A higher top formed at a critical resistance level on 10 February at 0.72487 and bears reacting swiftly after that by driving prices lower. A possible support level stopped them at 0.70861 on 14 February and now we will have to wait and see if more bulls want to come out and play.

If AUDUSD manages to break through the critical resistance level at 0.72487, then three possible price targets may be considered from there. Attaching the Fibonacci tool to the higher top at 0.72487 and dragging it to the bottom of the support level at 0.70861, the following targets can be calculated. The first target may be estimated at 0.73492 (161.8%). The second price target could be at 0.75118 (261.8%) and the third and final target might be anticipated at 0.77749 (423.6%).

If the support level at 0.70861 is broken, the above scenario is annulled.

As long as demand overcomes supply, the outlook for AUDUSD 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.

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Nigel Frith

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