ACT Markets > Blog > Forex > Technical Analysis > The AUSSY Dollar encounters resistance at 0.6784 – What Next?

The AUSSY Dollar encounters resistance at 0.6784 – What Next?

May 10, 2023 Financial Market, Technical Analysis

Key Take-Aways

  • Close to 0.6784, AUD/USD is likely to be resisted from rallying higher.
  • On the Daily chart, a significant bullish momentum has been in play from 28th April 2023 originating from a double bottom.
  • The Aussy Index is looking to rally up to the 70.70 psychological level for a Sell.
  • A break above 0.6810 could be a positive sign for the Aussy Dollar

Technical Analysis of AUD/USD

The AUD/USD has been attempting to break the 0.6784 resistance but it keeps getting rejected. The last rejection drove the price down to the support, the support held it, hence the formation of a double bottom on the daily chart. Back at the resistance level, looking towards the supply zone at 0.7050, does the Australian government have what it takes to boost their economic performance for a drive up of their currency price 300 pips? Both the Inner and the Outer trendline have been cleanly broken, which gives approval for the supply zone 0.7050. But price needs to retrace back to the supply zone which could take days.

In the meantime, if Investors have a positive sentiment about the Value of the AUD, then there is the possibility of breaking the resistance and rallying up to the supply zone.

AUDUSD Daily Demand and Supply Chart

The reaction at the resistance will also be determined by the position of the United States Consumer Price Index. If the CPI comes out negative, the AUD will gain strength against the USD, but if the reverse happens, the resistance will definitely hold leading to a massive sell.

Economic Release To watch

  • The United States Consumer Price Index

Author:
Adewuyi Ayodeji James known as A.A.James is a forex analyst and a passionate educator. He has almost a decade of experience in the global financial market and has taught hundreds of students across different countries and growing. He once served as a Business Development Manager, and the Head of Client Relations for Suavally Market Global, a leading forex institute in Africa. During his time at Suavally, He also doubles as the education Champion for one of her Partner brokers M4Market. A.A. James is a Dealer/Educator at ACT Brokers, the only Forex Brokerage firm with a dealing desk in Nigeria. He also teaches at RUBY FX Solutions. A.A. James is the Face and Host of the popular MORNING MARKET; a daily market analysis that holds every morning before the London session opens, with the growing attendance of clients from different brokers from across the globe. He is a Well sought-after retail FOREX Educator, both independent and Trainer for forex Broker(s). A public speaker, Mentor, and Life coach. A Recording Artist, Music, and Art Director with over a decade of active experience.

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