AUDUSD Technical Analysis


USD weakened across the board, lifting AUD/USD to 100-day MA hurdle. Is it a bull trap? Find out as this is answered on the 2 March AUDUSD Technical Analysis.

2 March, GKFX – Having recovered from the two-month low of 0.7712 in the North American session, the AUD/USD pair rose to the 100-day moving average (MA) resistance of 0.7773 in Asia as the greenback found no love, possibly due to the overnight decline in the treasury yields.

The yield on the 10-year treasury note fell from 2.87 percent to 2.79 percent yesterday, courtesy of slightly dovish comments from Fed Chair Powell before his Senate appearance and due to a sharp decline in US stocks due to growing concerns of a global trade war.

Wild ride

The Aussie dollar fell from 0.7764 to 0.7715 in a knee-jerk reaction to Trump’s tariff plan. It is feared that the move could yield retaliatory action from China and other trading partners, leading to a global trade war.

Still, the AUD/USD recovered from 0.7715 and rose to 0.7773. Experts believe trade war is a net negative for the Australian economy and hence the uptick seen in Asia could be a bull trap. As of writing, the currency pair is trading at 0.7765.

2 March AUDUSD Technical Analysis

A break above 0.7773 (50-day MA) would expose resistance at 0.7790 (Feb. 22 low) and 0.7820 (10-day MA). That said, The bearish daily relative strength index (RSI) and the downward sloping (bearish biased) 5-day MA and 10-day MA indicate upticks will likely be short-lived.

On the downside, a break below 0.7753 (Asian session low) could yield a re-test of the previous day’s low of 0.7712. A daily close below the same would expose support at 0.7501 (December low).

Disclaimer

This article 2 March AUDUSD Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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