Nov 03, 2022
VOT Research Desk
Fresh demand has been seen for the AUD/USD pair after it plummeted to close to 0.6326 during the Tokyo session.
The antipodean has shown a pullback move to about 0.6363 as the risk-on profile has tried to recover after a sharp sell-off in the risk-perceived currencies.
The unfavorable risk profile has only somewhat decreased but has not completely disappeared; therefore the pullback move may be brief. Under the crucial support level of 112.00, the US dollar index (DXY) has changed into a sideways configuration. The asset has already demonstrated a negative break of the Head and Shoulders chart pattern on an hourly basis, which denotes a bearish reversal.
The neckline of the chart pattern’s south-side break is being tested by the aussie bulls at 0.6370. This might make or ruin them. The 20-period Exponential Moving Average (EMA) at a downward slope of 0.6377 extends the downwards filtering.
More declines is anticipated, according to the Relative Strength Index (RSI) (14) which is trying to leave the negative 20.00–40.00 range.
In the future, if the asset drops below Thursday’s low of 0.6326, it will move toward the lows of 0.6273 on October 24 and 0.6210 on October 21.
On the other hand, the asset will go toward the high of the previous week at 0.6522 if there is a clear break above Wednesday’s high at 0.6493.
The major will go toward its October high at 0.6548 if the latter is breached.
Daily SMA20 0.6343 |
Daily SMA50 0.6554 |
Daily SMA100 0.6736 |
Daily SMA200 0.6979 |