The Australian Dollar (AUD) has shown interesting technical developments in its performance against the US Dollar (USD) and Japanese Yen (JPY). On the daily chart, the AUD/USD pair experienced a surge, forming a Bullish Engulfing candlestick pattern, which could indicate a potential reversal. However, further confirmation is needed. The 50-day Moving Average will be a crucial level to watch, as it could act as resistance and push prices lower. If the pair breaks lower, it may reach the November low of 0.6272.
Similarly, the AUD/JPY pair also saw upward movement as it broke out above a Symmetrical Triangle chart pattern, signaling a continuation of its uptrend. Nevertheless, negative divergence on the Relative Strength Index (RSI) suggests fading upward momentum, which could precede a decline. If this occurs, immediate support can be found at the 23.6% Fibonacci level of 94.93. On the other hand, if the pair continues to rise, it may target the current 2023 peak at 97.67.
These technical developments in the AUD/USD and AUD/JPY pairs provide potential trading opportunities. Traders should closely monitor key levels, such as the 50-day Moving Average for AUD/USD and the 14.6% Fibonacci retracement level for AUD/JPY, which could determine the direction of price action. Confirmation of the reversal or continuation patterns is essential to make informed trading decisions.