AUDUSD Technical Update – Price Action Analysis – 14th January
- The Australian dollar/US dollar pair has formed an inside day candle under the key 1.0600 area previous resistance. This came as price took out the intermediate swing high around 1.0583 and subsequently retraced the majority of the prior days range.
- A break of the lower end of this inside day would be trading directly into the 1.0500 round number area, an upside break would likewise need to contend with the aforementioned longer term resistance.
- Any sustained move through these levels could potentially see increased volatility for the AUDUSD over the upcoming trading sessions. Last Thursday had this pair print a daily range of 104 pips which was almost twice the 60-day average of 53 pips.
- We note that the US dollar was under pressure on other key pairs this past week, with the EURUSD recently taking out longer term resistance. With this in mind, any sustained EURUSD upside may provide a slight bias reference, and conversely, a move back into the recent range for EURUSD could be hinting at a near term stronger US dollar scenario.
- COT report update – large speculators increased the long AUD position by around 2% on the weekly basis, to hit an $8.5 bill net position.
Click the AUDUSD D1 chart image below to expand
AUDUSD Technical Analysis – Australian Dollar Forecast. Forex Analysis