AUD/USD Trades Bearish Channel – Stronger Dollar Plays  - Forex News by FX Leaders

AUD/USD Trades Bearish Channel – Stronger Dollar Plays 

Posted Thursday, September 26, 2019 by
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
S3 0.6721
S2 0.6756
S1 0.6777
Pivot Point 0.6792
R1 0.6813
R2 0.6827
R3 0.6863

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.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments