Technical Analytics Report

AUD/USD: Technical Analysis 13 Jan 2021

 

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

Rebounding from demand at 0.7029/0.6664 (prior supply) in late 2020, buyers, according to the monthly chart, appear free to explore as far north as 0.8303/0.8082, a supply zone aligning closely with trendline resistance (prior support – 0.4776).

In terms of trend, the primary downtrend (since mid-2011) remains south until breaking 0.8135 (January high [2018]).

Daily timeframe:

The near-retest of 0.7647 support produced a spirited bull candle Tuesday, settling a touch south of session highs.

Taking into account the prevailing uptrend (since March 2020), and monthly price taking aim at higher peaks, yesterday’s bullish showing throws light on supply at 0.7937/0.7890.

Momentum, as measured by the RSI oscillator, shows that although the indicator exited overbought terrain, support at 60.00 is seen creating a base.

H4 timeframe:

Yesterday’s animated rally (following Monday’s near-test of demand at 0.7665/0.7644) places H4 within close proximity of resistance at 0.7805 and a trendline resistance (0.7461).

H1 timeframe:

Early US Tuesday saw candlesticks revisit the 0.77 level, with sellers handing the baton to buyers. Follow-through momentum ousted 0.7750 resistance and the 100-period simple moving average, achieving highs at 0.7777.

Room to test 0.78 may stir a 0.7750 retest today, drawing in fresh buyers to possibly approach 0.78 resistance.

What’s also interesting is the RSI indicator dethroned trendline resistance and is now within shouting distance of overbought levels

Observed levels:

Monthly price appears itching to reach supply at 0.8303/0.8082 along with daily price also exhibiting scope to at least supply at 0.7937/0.7890. On top of this, H4 shows room to reach 0.7805 resistance, therefore, supporting a bullish scene should a 0.7750 H1 support retest arise.  

 

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