Home AUD/USD technical analysis: Better bid, but breakout still elusive
Forex News Today: Daily Trading News

AUD/USD technical analysis: Better bid, but breakout still elusive

  • AUD/JPY is flashing green on US-China trade optimism.  
  • A close above 72.73 is needed to confirm a bullish breakout.  

AUD/JPY is currently trading at 72.56, representing 0.40% gains on the day.

The currency pair picked up a bid near 72.00 after the news of a potential US-China currency pact hit the wires via Bloomberg, boosting demand for the risky assets like the AUD.

Even so, the pair failed to find acceptance above resistance at 72.73 – the upper edge of a falling channel represented by trendlines connecting Sept. 13 and Oct. 1 highs and Sept. 20 and Oct. 2 lows.

A close above 72.73 would confirm a bullish breakout and imply a resumption of the rally from the August lows below 70.00 and open the doors for a retest of recent highs near 74.50.

The outlook would turn bearish if the pair drops below Oct. 2’s low of 71.73.

Daily chart

Trend: Bullish above 72.73

Technical levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.