USDAUD closes above its opening price after recovering from early selling pressure
US Dollar/Australian Dollar (USDAUD) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
USDAUD ended the week -0.68% lower at 1.3978 after gaining 72 pips (0.52%) today. Trading up to 44 pips lower after the open, USD/AUD managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 1.3959, the forex pair confirms its breakout through the previous session's high having traded 27 pips above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (USDAUD as at Sep 14, 2018):
Friday's trading range was 128 pips (0.92%), that's slightly above last trading month's daily average range of 128 pips. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly above average.
Regardless of a weak opening the pair managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to the key resistance level at 1.3998.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's low at 1.3820, downside momentum might speed up should the currency mark new lows for the month.