chart of the day audusd short term uptrend remains intact 1854952017

Short-term technical outlook on AUD/USD

(Click to enlarge charts)

Key technical elements

• In the longer-term, the AUD/USD has been capped within a volatile range trading environment since 21 April 2016 with its range resistance/top at 0.7700/7730 (see daily chart).
• Since 02 June 2017 low, the AUD/USD has started to evolve within a short-term bullish ascending channel with its lower boundary now acting as a support at 0.7575. The  channel support of 0.7575 also confluences with the 50% Fibonacci retracement of the recent up move from 22 June 2017 minor swing low  to today’s current intraday high of 0.7615 ( see 1 hour chart).
• The daily RSI oscillator has inched higher from its corresponding support at the 53% level which suggests that medium-term upside momentum of price action remains intact.
• The hourly Stochastic oscillator has just exited from its overbought region and still has ample room to manoeuvre to the downside before it reaches an extreme oversold level. These observations suggest that the pair may see a minor pull-back at this juncture.

Key levels (1 to 3 days)

Intermediate support: 0.7590

Pivot (key support): 0.7575

Resistances: 0.7630 & 0.7690/7700

Next support: 0.7535/20

Conclusion

Short-term uptrend remains intact for AUD/USD but it faces the risk of a minor pull-back towards its immediate support at 0.7590 with a maximum limit set at the 0.7575 short-term pivotal support. Thereafter, it is likely to resume its bullish impulsive upleg to retest the 0.7630 intermediate resistance (14/15 June 2017 minor swing high area) before targeting 0.7690/7700 next (major range resistance in place since 21 April 2016).

On the other hand, failure to hold above 0.7575 should damage the short-term uptrend to open up scope for a choppy corrective decline towards the next support at 0.7535/20 (09 /13 June minor swing low area)

Charts are from eSignal

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