Australian Dollar Range Trade Set-Ups Galore. Which AUD Cross will Break First?

Australian Dollar, AUD/USD, AUD/NZD, AUD/JPY, Momentum -Talking Points

• The Australian Dollar stays within the vary in opposition to USD, JPY and NZD for now
• Although there are some similarities, every currency pair has distinctive properties
• Momentum, retracements and triangles might present some markers

The Australian Dollar is caught in ranges in opposition to a number of currencies, and this may replicate the broader macro image the place many central banks are set to be pausing on charge strikes.

AUD/USD

AUD/USD has been within the 0.6565 – 0.6806 vary for 11 weeks however it’s presently bumping up the highest finish of it, making a excessive of 0.6804 on Monday.

There are a number of prior peaks 0.6784 – 0.6808 space and this will likely proceed to supply a resistance zone. A break above there would additionally overcome the 100- and 260-day Simple Moving Averages (SMA) and may this happen, it’d point out evolving bullish second

The value motion of late has additionally enabled the shorter-term 10-, 21-, 34- and 55-day SMAs to converge slightly below 67 cents. A transfer underneath 0.6680 may see a run towards the underside finish of the vary.

Previous lows within the 0.6550 – 0.6590 space is perhaps the following assist zone.

Chart created in TradingView

AUD/JPY

AUD/JPY has been within the 86.06 – 93.05 vary for five months.

It pulled again from the current excessive of 92.44 to simply beneath the 50% Fibonacci Retracement degree of the transfer from the low of 86.06 close to 89.25. The 89.15 – 89.25 space might present assist.

Further down, the 61.8% Fibonacci Retracement degree close to 88.50 may lend assist forward of the prior lows and breakpoints of 87.87, 87.42, 87.30, 86.26, 86.07 and 86.06.

On the topside, resistance might be provided on the prior peaks of 92.29, 92.44, 93.05 and 93.36.

Chart created in TradingView

AUD/NZD

AUD/NZD has been in narrower ranges for a while and this value motion has seen a Symmetrical Triangle emerge.

Although the worth tried to maneuver above the higher trendline final month, it didn’t shut above it and it proved to be a false break to maintain the triangle formation intact. A conclusive break above or beneath the triangle may see momentum construct in that path.

Support might lie on the current pattern traces or the earlier lows of 1.0624, 1.0588 and 1.0468. On the topside, resistance might be provided at prior peaks and breakpoints of 1.0834, 1.0893, 1.0931, 1.1045 and 1.1087.

Chart created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

Please contact Daniel through @DanMcCarthyFX on Twitter