With an impressive rise in AUD/USD and AUD/JPY, the question arises – can this upward momentum be sustained in the Australian Dollar Update?
Interesting Moves in the Australian Dollar
AUD/USD: Is a Reversal on the Horizon?
On the daily chart, something interesting is happening with the Australian Dollar (AUD) against the US Dollar (USD). On Thursday, the AUD/USD pair experienced a surge, leaving behind a Bullish Engulfing candlestick pattern. This pattern can sometimes indicate a reversal in the market, but we need more confirmation to be sure.
There are a couple of other factors that support the possibility of a reversal. First, prices were unable to break below the 78.6% Fibonacci retracement level of 0.6382. Second, there has been positive RSI divergence, which means that the downward momentum is weakening. These early signs suggest a potential reversal, but we still need more confirmation.
One important thing to watch is the 50-day Moving Average. It could act as resistance and push prices lower. If it doesn’t hold, then we might see a drop towards the November low of 0.6272.
AUD/JPY: Riding the Uptrend
The Australian Dollar is also making moves against the Japanese Yen (JPY). Recently, the AUD/JPY pair broke out of a Symmetrical Triangle chart formation, signaling an extension of the uptrend that started earlier this year. Currently, prices are facing immediate resistance at the 14.6% Fibonacci retracement level of 95.97. However, there is negative RSI divergence, indicating that the upward momentum is fading. This could lead to a reversal and a potential drop in prices. If the reversal happens, the focus will shift to immediate support at the 23.6% level of 94.93. On the other hand, if prices continue to rise, we might see a revisit of the current 2023 peak at 97.67.
So, keep an eye on these interesting moves in the Australian Dollar. There are signs of a potential reversal in both AUD/USD and AUD/JPY, but we need more confirmation to be sure.