AUD/USD in Consolidation. GBP/AUD Risks Reversal, AUD/NZD More so

Talking Points – AUD/USD, GBP/AUD, AUD/NZD, Head and Shoulders Pattern

  • Critical resistance prevented major AUD/USD upside reversal last week, key support held
  • GBP/AUD is closer to a reversal of the dominant uptrend from August, proceed with caution
  • AUD/NZD ends consolidation with a bearish reversal pattern, six-month uptrend is at risk

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AUD/USD Technical Outlook: Neutral

The Australian Dollar spent most of its time trading sideways against its US counterpart last week. AUD/USD was initially on the verge of an upside reversal, but as anticipated key resistance held around the December/May 2016 lows. Meanwhile immediate support areas are preventing downside progress.

The first one is the September 11th low at 0.70830 which is also closely aligned with the 38.2% Fibonacci extension. Descending through that then leaves the October 8th low exposed at 0.70390. Until meaningful progress is made in either direction, the technical outlook for AUD/USD will have to be neutral.

AUD/USD

Article source: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2018/10/19/AUDUSD-in-Consolidation-GBPAUD-Risks-Reversal-AUDNZD-More-so.html