AUDUSD finds buyers at key support level
Australian Dollar/US Dollar (AUDUSD) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
AUDUSD finished Tuesday at 0.7161 gaining 38 pips (0.53%). Closing above Monday's high at 0.7150, the Aussie confirmed its breakout through the prior session high after trading up to 17 pips above it intraday.
Daily Candlestick Chart (AUDUSD as at Aug 04, 2020):
Tuesday's trading range has been 61 pips (0.86%), that's slightly below the last trading month's daily average range of 65 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AUDUSD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 29th, AUDUSD gained 0.10% on the following trading day.
After trading down to 0.7106 earlier during the day, the Ozzie bounced off the key technical support level at 0.7121 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 0.7227 where further buy stops could get triggered. 2019's high at 0.7295 is within reach and we might see further upside momentum should AUD/USD manage to break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for AUD/USD. Out of 501 times, AUDUSD closed higher 52.50% of the time on the next trading day after the market condition occurred.
With four out of the other six Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.55% and USDCHF closing -0.49% lower. On the flipside the best performers have been EURUSD closing 0.35% higher and NZDUSD gaining 0.15%. Looking at the Minor FX Pairs and Crosses, the winners of the day have been CHFZAR surging 1.54% and EURZAR closing 1.39% higher. The worst performers of the day have been ZARJPY tanking -1.14% and USDCZK closing -0.92% lower. Read more