Australian dollar closed the trading day at around its opening price, forming a doji on the daily chart that forced traders to sit tight as the exhaustion happens just below the 161.8% of the downtrend at 0.874 support
The 104 moving average in orange changes to dip downwards as the candlesticks reversed at 0.874 resistance. A failure to break above the blue upwards sloping trendline sees a a subdued uptrend and further slides are expected.
A failure to break above 0.872-0.874 today will likely see resistance tested as a head and shoulders formation that will see AUD/USD fall towards supports 0.868, 0.863, 0.856. Note the MACD still shows signs of bullish trend action but the moving averages have dipped slightly.
Trend Direction |
S3 |
S2 |
S1 |
R1 |
R2 |
R3 |
Entry |
Stop Loss |
Exit |
| Slight bullish / near resistance | 0.856 | 0.8627 | 0.868 | 0.874 | 0.877 | 0.882 | 0.874 | 0.882 | 0.863 |