How Will the Dueling Trendlines Shape the AUDUSD's Next Move?
18 September 2023
Today, we shift our focus to the Australian dollar against the American dollar, an intriguing pair currently oscillating within a relatively narrow band, yet teetering on the brink of a significant trading cue.
Casting our eyes back to the onset of August, the AUDUSD pair has been charting a lateral course. It has been ensnared between the boundaries of a yellow horizontal resistance pegged at 0.651 and its counterpart, a blue horizontal support etched at 0.636. However, this isn't the entirety of the technical tableau. Two descending trendlines, colored in green and black, have also entered the fray, weaving an intricate web of resistance. Additionally, a more transient support level, bathed in orange, lies at 0.642, providing a near-term cushion for the price.
As it stands, the price action showcases a battle of wills. On one side, the Australian dollar is mustering strength, attempting to shore up its position above the 0.642 support, while simultaneously launching assaults on the twin descending barriers. This tug-of-war presents traders with a quandary but also with potential opportunities.
For those eyeing a bullish play, a clear breach of both descending trendlines could unlock a pathway towards the upper echelons of the yellow resistance. This would constitute a mid-term buying proposition, leveraging the inherent strength and momentum of such a breakout. Conversely, should the AUD falter at its current juncture, slipping below the orange demarcation at 0.642, it might herald a selling opportunity. The immediate gravitational pull would likely be towards the blue support, stationed firmly at 0.636.