26 July AUDUSD Technical Analysis: AUDUSD put demand has dropped sharply


The AUDUSD put demand has dropped sharply in the last six days, adding credence to pair’s recovery from the low of 0.7318 and increased prospects of a double bottom reversal. What’s next? Gain insight into the following 26 July AUDUSD Technical Analysis.

26 July, GKFX – As of writing, the one-month 25 delta risk reversals (AUD1MRR) stand at -0.80 vs -1.0 on July 20, representing a falling implied volatility premium or falling demand for the AUD put options (bearish bets).

AUD1MRR

26 July AUDUSD Technical Analysis

The investor interest in the AUD put options has declined, likely due to the AUDUSD’s turn higher from the July 20 low of 0.7318. The currency pair could rise further as the Chinese yuan is in a recovery mode and the dollar index is flirting with a bearish breakdown.

Consequently, the AUDUSD could soon rise above 0.7484 (double bottom neckline), confirming a double bottom breakout (bearish-to-bullish trend change). The bullish reversal would open the doors to 0.7650 (target as per the measured height method).

Daily chart

Spot Rate: 0.7442

Daily High: 0.7463

Daily Low: 0.7432

Trend: Bullish above 0.7484

Resistance

R1: 0.7470 (50-day moving average)

R2: 0.7484 (double bottom neckline)

R3: 0.7494 (50% Fib R of June 6 high – July 2 low)

Support

S1: 0.7410 (10-day moving average)

S2: 0.7360 (July 24 low)

S3: 0.7318 (July 20 low)

Disclaimer

This article 26 July 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.

    Share Your Opinion, Write a Comment