AUD/USD Trades Bearish Channel - Stronger Dollar Plays  - Forex News by Strategia Forex

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!

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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.
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