Today, on the last day of weekly trading, let's take a look at the trading charts and analyse the dynamics of the Australian dollar/US dollar pair from a technical point of view. Although the current five-day trading week is coming to an end, I think it would be a wise decision to start considering the pair's movement with the weekly chart.
According to the weekly chart, the AUD/USD pair has been trading downwards for the fourth week in a row. Thus, market sentiment regarding the Aussie is mostly bearish. It can be seen that the price is trying to break through the strong support level of 0.7172. However, since the weekly trading is not yet closed and the United States is celebrating Thanksgiving Day, market activity will be thin. This means that possible surprises and unexpected movements cannot be ruled out. Nevertheless, bears will hardly stop exerting pressure. At the time of preparing this material, the pair dropped to the next support level of 0.7109. Currently, it is rebounding from this mark.
If the price closes the week below the support level of 0.7172 or below the 0.7109 mark, the AUD/USD pair will extend losses. In this case, the quotes may well decline to the most important historical, psychological, and technical level of 0.7000 next week. The fate of the Australian currency will be decided at this level. If bulls are able to drive the price up, a long lower shadow candlestick is formed on the weekly chart, and the price closes above 0.7172, the pair will most likely enter a correction or even reverse upwards. For now, bears are taking the lead. Nevertheless, I recommend drawing definitive conclusions only after the weekly trading is closed and the current candlestick is shaped.
The daily chart also shows that the AUD/USD pair is coming under downward pressure. If bears continue to drag the price down, the support level of 0.7109 will most likely be broken. This means that the pair will end today's trading below this mark. Otherwise, if the current bearish body of the daily candlestick begins to fade, a candlestick reversal pattern may be formed. This will signal at least a strong corrective pullback. At the moment, I think it is too early to draw firm conclusions, especially considering the specifics of today's trading. Therefore, I recommend taking a wait-and-see approach and refrain from trading at least until Monday. Next week, we will analyse this currency pair from a technical point of view again and will be able to define the most relevant trading strategies for this instrument.
Have a nice weekend!
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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