AUD/USD – Bearish
The Australian Dollar started off the New Year on a sour note against the US Dollar, with AUD/USD breaking under a bearish Rising Wedge chart pattern on the daily chart below. This may open the door to resuming the downtrend from late October through November. However, prices turned cautiously higher to round off the week. Still, the 50-day Simple Moving Average appears to be holding as key resistance, maintaining the broader downside focus that was seen throughout last year.
Extending losses places the focus on the key 0.6991 – 0.7016 support zone. Taking out the latter would expose lows from June 2020, making for another range of support between 0.6777 and 0.6840. On the flip side, a confirmatory daily close above the December high at 0.7278 may shift the technical outlook bullish, exposing the 61.8% Fibonacci retracement at 0.7341.
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