Forexrobots24

forex advisor developer

AUD/USD Technical Analysis: Aussie Dollar Eyes 2020 Trend Top

AUD/USD TECHNICAL OUTLOOK: BEARISH

  • Australian Dollar racing upward to challenge 2020 trend resistance
  • Breaking trend line support near 0.61 needed for bearish conviction
  • Trader sentiment studies warn positioning may pivot to favor bulls

The Australian Dollar has mounted a spirited recovery against its US counterpart, pushing past resistance marked by the 61.8% Fibonacci retracement at 0.6236 to set its sights on a falling trend line defining the down move since the start of the year. This is bolstered by the 78.6% level at 0.6433.

Breaking above this juncture with confirmation secured on a daily closing basis may neutralize near-term selling pressure, setting the stage for a further recovery to challenge formerly long-standing support in the 0.6671-90 zone. Breaching counter-trend line support near the 0.61 is probably needed to make a compelling case for downtrend resumption.

AUD/USD Technical Analysis: Aussie Dollar Eyes 2020 Trend Top

AUD/USD daily chart created with TradingView

Starts in:

Live now:

Apr 14

( 02:04 GMT )

Recommended by Ilya Spivak

AUD/USD Trading Preparation for the Week Ahead

Register for webinar

Join now

Webinar has ended

AUD/USD TRADER SENTIMENT

AUD/USD Technical Analysis: Aussie Dollar Eyes 2020 Trend Top

Retail sentiment data shows 52.17% of traders are net-short, with the short-to-long ratio at 1.09 to 1. IG Client Sentiment (IGCS) is typically used as a contrarian indicator, so traders being net-short suggests a broadly bearish AUD/USD trend bias.

However, the extent to which traders’ exposure is tilting net-short has diminished over the past week such that positioning is nearly balanced. That may be laying the groundwork for a sentiment flip that alters the balance in favor of the upside.

See the full IGCS sentiment report here.

How to Use IG Client Sentiment in Your Trading

How to Use IG Client Sentiment in Your Trading

Recommended by Ilya Spivak

Improve your trading with IG Client Sentiment Data

Get My Guide

FX TRADING RESOURCES

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter