Technical Analytics Report

AUD/USD Technical Analysis Report 21 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 (forming a shooting star), 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:

Recent developments witnessed the Australian dollar strengthen against the US dollar, extending recovery gains a few pips ahead of support at 0.7647.

Increased interest to the upside could see AUD/USD invade 2021 tops and possibly make a run for supply at 0.7937/0.7890.

In terms of the RSI indicator, resistance at 60.00 is being tested while support rests below at 52.00.

H4 timeframe:

Following Monday’s test of demand at 0.7665/0.7644 (prior supply), the pair continued to flex its financial muscle on Wednesday, reaching fresh weekly peaks at 0.7760.

Resistance falls in at 0.7805, with a break unveiling resistance at 0.7843.

H1 timeframe:

After a near-retest of the 100-period simple moving average at 0.7719 heading into US trading Wednesday, short-term buyers made contact with 0.7750 resistance. This was joined by mild RSI bearish divergence.

Brushing aside 0.7750 could unearth further upside, with 0.78 resistance perhaps on the radar for many breakout buyers. 0.78, as you can probably see, is also linked with H4 resistance at 0.7805.

Observed levels:

Room for H4 buyers to approach resistance at 0.7805 (as well as higher timeframe action showing space to advance) implies H1 0.7750 resistance is on thin ground. A break higher may call on short-term breakout buyers, with 0.78 targeted.

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