The Australian Dollar[1] has rallied nearly 2% off the fresh yearly lows registered last week with the advance taking price into a critical pivot zone we’ve been tracking for months now at 7327/363[2]. Here are the updated targets and invalidation levels that matter on the AUD/USD charts into the open of the week. Review this week’s Strategy Webinar[3] for an in-depth breakdown of this setup and more.
AUD/USD Daily Price Chart
Technical Outlook: Earlier this month we highlighted a key focus range in AUD/USD between 7327-7505[4]; price broke the bottom of this zone with conviction on August 10th with the decline taking out support targets at 7298 and 7230 before turning just pips from the 2017 open at 7200.
The Aussie reversal is now targeting former key support, now resistance, at 7327/36[5] where the July low-day close and 61.8% retracement[6] of the 2016 advance converge on former slope support. This is the first major resistance hurdle for this rebound and a breach / close above would be needed to suggest a more significant low is in place.
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AUD/USD 240min Price Chart
Notes: A closer look at Aussie price action sees the pair opening the week just below this key resistance threshold. Interim support rests at 7298 backed by 7253 with our near-term bullish invalidation level at the yearly low-day close at 7239. A topside breach here targets 7376 backed by the May lows
