AUDUSD Technical Analysis – October-12-2023
Fxnews – In this detailed article, we delve into the AUDUSD technical analysis. We’ll be examining the price action behavior on both the Daily and 4-hour charts, providing a comprehensive understanding of the current market dynamics.
AUDUSD Technical Analysis: Weekly Pivot on the Test
FxNews – Currently, AUDUSD is trading below the Ichimoku cloud on the daily chart. This positioning indicates a bearish sentiment in the market. However, there’s potential for growth as the currency pair has room to test the resistance levels between 0.6498 and 0.652. The RSI indicator crossing the 50 level further supports this possibility. Despite the prevailing bearish sentiment, bulls are also optimistic about testing these resistance levels.
Transitioning to a closer look at the AUDUSD 4-hour chart, we observe a significant shift in market dynamics. The currency pair has broken out of the bearish channel and has formed a new trend within the bullish channel. The Ichimoku cloud now sits below the price, indicating a bullish sentiment in this timeframe.
Taking a closer look at the AUDUSD 1-hour chart, it’s evident that the pair is trading within a rising channel. This pattern typically indicates a bullish sentiment, suggesting that buyers are currently dominating the market.
In light of these observations, going short on AUDUSD at this stage is not recommended. A more prudent approach would be to wait for the bulls to drive up the price into the Ichimoku cloud before selling near the 0.6498 level. This strategy minimizes risk by allowing for a smaller stop loss while maximizing potential rewards from the trade.
In conclusion, this comprehensive analysis provides traders with valuable insights into current AUDUSD market dynamics and offers a strategic approach to trading this currency pair.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.