Daily Pin Bar On The AUD/USD – AUD Hesitates At Resistance
- The AUDUSD currency pair has given a daily timeframe Pin Bar, at the previous swing-high level, after rallying to a high around 1.0624 last week. The AUD has has gained on broad-based risk sentiment (US Federal Reserve’s new stimulus plans) but is hesitating at this technical level.
- This countertrend price action comes just above the 1.0500 round number. A break below this level would add additional weight to a corrective move lower scenario.
- Price broke above a descending trend line, coming from the 1.0855 early Feb swing high, and closed below after forming this Pin Bar.
- Any downside could potentially see support at the following areas. 1.0500 (psychological round number), 1.0450 (38.2% retrace and price pivot) and 1.0400 (price structure daily highs and close to 50% retrace).
- The AUD is under near term pressure against other currency majors including the EUR which is trading at EURAUD 1.2466 and is in a strong uptrend.
- Looking at the flip side; a sustained break above the PinBar high opens up a potential move to the 1.0730 area which has marked multiple weekly highs and capped price on several occasions.
- RBA Minutes - from the Reserve Bank of Australia’s September board meeting - are the key event risk for the Aussie dollar this coming week (released Monday 01:30 GMT); any hint of monetary policy easing leaves the AUD fragile and could see further downside.
AUDUSD Daily Pin Bar