AUDUSD Traders Eying 0.6650

Mon 27th February 2023 : Daily Currency Strength Analysis

In Today’s Video we’re looking at Trading Setups in:

• AUDUSD 
• GBPAUD (Covered in Video)

AUDUSD Traders Eying 0.6650

In today’s forex strength video we identified that the Australian Dollar (AUD) remains one of the weakest currencies.

The United States Dollar (USD) tops both of our currency strength indicator tables as the strongest currency.

This means we should be looking for the price of AUDUSD to continue lower into key areas of support.

Price has formed a head and shoulders pattern which is a bearish trend reversal indicator.

The neckline of the pattern was previous support of 0.6875.

Last week price traded through this support and continued lower in line with the outlook from the tables.

Currently price looks to be heading towards the lows that formed in December of 0.6650.

Trend traders need to wait for the price to retrace to resistance of the daily 200 moving average and trendline before looking for short opportunities.

Day traders may wish to look for lower time frame retracements. 

Technical Observations

• The USD is S1 and AUD is W1 on the day traders table.
• Price has traded through trendline resistance and support of daily 200 moving average.
• Sellers could wait for price to retrace back to this support of 0.6800 and as use it as resistance.
• Support can be found at 0.6650 and would be a good area to target for short opportunities.