The AUD/USD has posted an impressive rally since the month of March. What is the technique of polarization of the pair?
Here is their view, courtesy of eFXdata:
The appreciation of the Australian dollar speedy-25% of the ascension since the March lows, or 0.5510 not bear market correction.
Rather, it has the makings of a new bull market following a near the nine-year period, 50% of the decline of its 1.1081 summit in 2011.
The scope drop that has resulted in a “spike low” and a “quick reversal” on the 19th of March, is typical of the major changes in the trend. Strong technical signals for a new bull market to come from Friday daily a close above 200 DMA in 0.6658 and on Monday the need above the 55-WMA at 0.6725 for the first time in two years.
The a break above 0.6823, the 50% retracement the decrease in 2018-20 from 0.8136 to 0.5510), and 0.6825, 23.6% of Fibo The 2011-2020 decline from 1.1081 to 0.5510, reinforces this notion.
The momentum of the AUD rally, suggests a weekly a close above the 100 WMA currently at 0.6925, it is likely that after a period of consolidation.
A test of the December 31, 2019 up to 0.7032, and the 200-WMA at 0.7286 will then follow.
A weekly a close above 200 WMA and confirms a bull market.
Corrective declines should now hold support at the previous resistance, or 0.6658-85.
Only a drop below 0.6373-78, the lows at the beginning of May and will jeopardize the the scope of full-fledged, AUD/USD bull market.
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