AUD/USD Trades Bearish Channel – Stronger Dollar Plays
Arslan Butt • 1 min read
AUD/USD traded bearishly and fell to 0.6745 level during the early Asian session; however, the pair is seen on the recovery track to trade at 0.6762. The bearish movement came from two important fundamentals. Firstly, the Sino-US trade deal as the United States President Donald Trumps said that the trade deal could happen with China as soon as possible.
Secondly, the United States’ ten-year Treasury yields remain positive as the US intends to buy five year treasury bonds, which may reduce the supply of dollar in the market.
AUD/USD – Technical Outlook
On the technical front, AUD/USD is consolidating at 0.6762 as the bearish channel trendline is extending resistance around 0.6770 level.
The 50 and 100 periods EMA is suggesting a bearish trend in AUD/USD. While the pair has formed a bearish engulfing candle on the 4-hour timeframe, the bearish engulfing typically drives bearish trends in the market.
The RSI and Stochastics are steady at 48 and 40 levels, suggesting a bearish trend in AUD/USD.
Daily Support and Resistance
Pivot Point 0.6792
AUD/USD – Forex Trading Signal
As per the bearish setup, AUD/USD can stay bearish below 0.6790 level, and that’s the level where I would prefer to share a selling forex trading signal. On the lower side, the target will be around 0.6745.