AUD/USD Bottomed Out Or Just A Correction?

June 1, 2018

 

On the daily chart earlier pair was heading south but after arriving at 0.7411 level we have seen a pullback from the buyer’s campaign and a hammer candlestick has been formed. Bulls managed their self and trying to move it upside. Presently moving averages are overlapping with each other due to that we have seen choppy sessions.

 

From technical point of view a potential rounding bottom pattern has been formed on the daily technical chart and we will get further confirmation above 0.7600 level. Well the odds are in favor of bulls and intraday to weekly bias remain neutral but it will be bullish once pair trade and settle above 0.7600 level.

 

Earlier US Non Farm Payroll was unable to make the direction in the pair and the China PMI was 51.1 i.e. in expansion territory in 12 successive months. The positive headline figure has failed to put a strong bid under the Aussie dollar, leaving the pair largely unaffected.

 

 

A bullish crossover on MACD indicator is favoring the bulls and providing trend reversal signal for the time being and RSI is also providing bullish signal from positive territory. The 0.7700 level is immediate resistance level followed by 0.7800 whereas 0.7450 level is strong key support level followed by 0.7350 level.

 

 

 

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