Market update: Australian dollar trends remain intact despite some stalls, where to for AUD/USD?
The Australian dollar has found some strength overnight; AUD/USD is in a range while AUD/JPY has popped higher and if the trends continue, will momentum push AUD/USD higher still?
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/bg_aud_229435122.jpg/jcr:content/renditions/original-size.webp)
AUD/USD technical analysis
The Australian dollar has steadied this week and it remains within an ascending trend channel.
AUD/USD had a look lower last week as it briefly dipped below two previous lows, but it was unable to sustain the bearish tilt. That move also went below the long-term 260-day simple moving average (SMA). The inability to follow through could suggest that the dip has been rejected for now.
This has set up a potential support zone in the 0.6855 – 0.6870 area which currently coincides with a short-term ascending trend line and the 55-day SMA. Further down, support might be at the 200-day SMA which is currently near the psychological level of 0.6800.
Below there is a longer-term ascending trend line at 0.6750 ahead of the previous lows of 0.6722 and 0.6688. The 100-day SMA lies between those price points and may lend support.
On the topside, resistance could be offered at the breakpoints and prior peaks of 0.6984, 0.7011, 0.7137 and 0.7158. The latter is the 12-month high that failed to break the topside of the ascending trend channel. That line might continue to provide resistance, currently dissecting at 0.7240.
Looking at momentum, the SMAs could indicate some sideways price action with a possible slight bullish bias. While the price is above the medium and long-term 55-, 100-, 200- and 260-day SMAs, it is below the short-term 10- and 21-day SMAs.
AUD/USD daily chart
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/au/images/News-and-articles/AUDtechDD1.png/jcr:content/renditions/original-size.webp)
AUD/JPY technical analysis
AUD/JPY has broken above a descending trend line and made a two-week high overnight.
If it remains above the trend line, it may indicate that bearish momentum is fading, and a possible reversal could unfold.
The price once again moved above the Ichimoku Kinko Hyo, which is often referred to as the Ichimoku Cloud, which might suggest that bullishness may evolve.
A move back below the Senkou Span A (Leading Span A) could question the bullish slant.
Resistance might be at the previous peaks of 92.82, 93.36, 94.13 and 94.65.
On the downside, support may lie at the prior lows of 90.23, 88.12, 87.41, 87.30 and 87.03. An ascending trend line could provide support, currently at 88.60.
AUD/JPY daily chart
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/au/images/News-and-articles/AUDtechDD2.png/jcr:content/renditions/original-size.webp)
This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/ContentImage/Forex global component NA banner.jpg/jcr:content/renditions/original-size.webp)
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices