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Fan Yang

AUD/USD Will Likely Break the Rising Trendline Support

The USD is killing it today. During the 4/23 session, it rallied across the board. Let's take a look at AUD/USD, which greenback strength dragged down sharply in the past few sessions. 

AUD/USD Daily Chart

(click to enlarge)

- The daily chart shows AUD/USD testing a rising trendline coming up from early 2016. 
- But with price falling sharply towards it, I would not rely on this support anymore.
- Also, note that after price broke below the 200-, 100-, and 50-day simple moving averages (SMAs), it came back up to test the SMA cluster.
- The SMA cluster held as resistance and price fell sharply after that. This is a sign that bears are in control.
- Instead of the trendline, I think we should anticipate the dip towards 0.75 before expecting any support.
- Since the prevailing trend is neutral to bullish, we can rely on the 0.75 area for support at least in the short-term for a rebound to 0.76 to 0.7650 (recent support pivot). 

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