Wednesday, May 22, 2024
HomeFinance NewsAUD/USD, AUD/JPY Surge but Can They Maintain Momentum?

AUD/USD, AUD/JPY Surge but Can They Maintain Momentum?

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.

Source link



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments