Resistance by thriving USD and miserable AUD

By Tomasz Wisniewski|

Published: May 30 2023, 11:57 GMT+0

Resistance by thriving USD and miserable AUD


May was a pretty rainy month for both Antipodes currencies – AUD and NZD. On the other hand, the American Dollar had quite a ball! One thus cannot be surprised that the AUDUSD is hovering around the yearly lows at the moment.

In today’s analysis, we will check the situation on the AUDUSD with a pretty clear signal to sell. Since the end of February, the price here had been trading sideways inside the rectangle pattern between the orange and yellow line. Last week, the AUDUSD managed to escape this sideways trend to the downside, triggering a mid-term signal to sell. It was confirmed yesterday and today, when the price bounced off the broken support, it was further confirmed as a resistance.

As long as we stay below the yellow area, the sentiment towards the AUDUSD is negative and the chances of new yearly lows are much higher than the chances of a comeback inside of the rectangle.