News & Analysis

Eightcap Forex technical insights; AUD showing signs of buyer accumulation.

Oct 24, 2018 | Forex News

Hi traders, looking at the AUDUSD and AUDJPY we can see some signs buyers are accumulating. Yes, the longer term trends are still down but in the short term, we can see higher lows and support levels forming. What was interesting over the last two days of trade this week was the way the AUD acted while the EUR and GBP saw heavy falls to the USD and JPY. Yes the AUD did make a strong two-day decline to the Yen but it clawed back a lot of it yesterday to hold above its range support. The AUDUSD really only got going south after some heavy pushing from sellers. Buyers quickly reentered after yesterday’s new weekly low.

Taking a look at the price today so far buyers are in control, the AUD is making decent gains to the JPY at this point in the day. Let’s look at the daily charts.

AUDUSD – a new higher low has set up after yesterday’s failed low breakout. The base of the higher low lines up with a previous high. While this base holds for buyers we’re looking for further upside. If buyer momentum continues we see .7145 as the next level of resistance.

AUDJPY – med-trend line was broken in September creating the first main low. Sellers attempted a move down but where halted creating a 2nd higher low. In the short term, we can see a range floor from 79.55 area. Sellers attempted a break of this level overnight only to be rejected again. That test lower also found rejection from the 79.04 area low. These are signs showing sellers are losing some momentum. While the range base remains in play we’re looking for further buyer momentum. The next test for buyers will be the 80.20/40 resistance area if reached.

Good trading from Eightcap

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