29 May 2019
AUD/USD technical analysis: Bulls step through channel resistance, target break of 0.6940
- There are too many fundamentals stacked against the Aussie to have much confidence in buying it, however, from a TA perspective, AUD/USD has reached the top of descending interim channel at 6940 within a broader bear trend, supported at a key 78.6% Fibo and has risen above the six-week downtrend channel resistance line at 0.6894.
- So, there is a bullish argument, supported by bullish daily stochastics that has nowhere left to run and should, thus, turn higher.
- If price breaks higher above the 20 DMA and 23.6% Fibo line, the 0.70 handle comes into play, 15th march double bottoms + 50 DMA/38.2% Fibo (confluence) which should make for a tough resistance.
- If the funda is bullish enough, the price cab set a course to the top of broader channel resistance and will be looking to test the 200 DMA thereafter - But you can bet on a battle between the bears and bulls at 7030/50.
- China PMI - RBA in play and trade headlines likely to keep bulls in check. A material rejection from here to the downside will be bringing the .6744 Jan 2018 low into play.
