Technical Analytics Report

AUD/USD Technical Analysis 19 Jan 2021

Monthly timeframe:

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

Following two spirited months of gains off demand at 0.7029/0.6664 (prior supply), buyers, despite January trading off best levels, appear free to explore as far north as 0.8303/0.8082—a supply zone aligning closely with trend-line 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:

Partly modified from previous analysis –

Since January 6 refreshed 2021 tops at 0.7820, AUD/USD has consolidated gains.

In terms of technical levels to be mindful of, support at 0.7647 could wave in price action today. Buyers embracing this level throws light on supply at 0.7937/0.7890.

In terms of the RSI indicator, support at 60.00 collapsing on Friday draws support at 52.00 into range.

H4 timeframe:

Demand at 0.7665/0.7644 (prior supply) embraced price action on Monday, following an early trendline support (0.6991) breach. You may also recognise this zone shares space with daily support noted at 0.7647.

Demand at 0.7600/0.7625 stalks lower terrain, awaiting any break of 0.7665/0.7644. 0.7600/0.7625 was a key decision point.

H1 timeframe:

The uninspiring effort to hold 0.77 led H1 into demand from 0.7654/0.7672 on Monday, with early London attracting bullish flow.

0.7654/0.7672 is interesting in terms of technical confluence—fastened to the upper side of H4 demand at 0.7665/0.7644. However, according to the H1 chart, a break beneath 0.7654/0.7672 sheds light on support from 0.7623, which happens to coincide with H4 demand at 0.7600/0.7625.

RSI fans will also note the indicator exited oversold territory and is within close range of 50.00 and trendline resistance (prior support).

Observed levels:

While monthly price is poised to take on higher levels, the daily chart suggests a 0.7647 support retest may be in the offing beforehand. H4 demand at 0.7600/0.7625, therefore, could make a show (an area holding H1 support at 0.7623) and offer a platform to work with.

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