AUDUSD Technical Analysis – December-12-2023
In today’s comprehensive AUDUSD technical analysis, we will first scrutinize the price action of the currency pair, and then meticulously delve into the fundamental analysis pertaining to the AUDUSD pair.
AUDUSD Technical Analysis
FxNews – The AUDUSD currency pair’s uptrend has persisted since it surpassed the early December high of 0.6675. Several technical indicators suggest that this bullish trend is likely to continue. The RSI (Relative Strength Index) is nearing the overbought zone, indicating strong buying momentum. Additionally, the Awesome Indicator is showing green bars, which typically signal upward movement in the market. These factors, combined with the formation of a bullish flag pattern, suggest that the AUDUSD price may target the upper line of this bullish flag.
The level of 0.6675, along with the 61.8% Fibonacci retracement level, provide support for this bullish technical analysis. As long as the market remains above these support zones, the bullish outlook for AUDUSD remains credible.
However, if the bears manage to push the price below the 61.8% Fibonacci level and stabilize it there, this would challenge the bullish perspective. In such a case, the next level of support to watch would be the 50% Fibonacci level. This level gains additional significance as it aligns with the lower line of the flag pattern, reinforcing it as a potential support area.
Australia S&P/ASX 200 Index Recovers
Reuters – On Tuesday, the S&P/ASX 200 Index climbed by 0.8%, settling at 7,489, and reversing its previous session’s losses. This rise was primarily driven by the energy sector, which benefited from stronger oil prices. Australian stocks mirrored the overnight advancements on Wall Street, as investors seemed to overlook the Federal Reserve officials’ comments against the anticipation of interest rate cuts. Locally, the focus is now on the upcoming Reserve Bank of Australia’s meeting minutes, which are expected to provide insights into the future of interest rates.
Leading the gains in the energy sector were companies like Woodside Energy, which rose by 1.7%, Carnarvon Energy up by 5.1%, Karoon Energy increasing by 4.4%, and Beach Energy by 3.2%. Other major contributors to the index’s rise included QBE Insurance, gaining 3.9%, and Fortescue Metals, which went up by 1.1%.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.