AUSTRALIAN DOLLAR, AUD/CHF, AUD/JPY, AUD/USD, TECHNICAL ANALYSIS – KEY POINTS:
- AUD/USD seems set to rise to new multi-year peaks after slicing through the key resistance
- The Inverse Head & Shoulders pattern hints at the extended rise for the AUD/JPY
- AUD/CHF eyes a nudge to challenge the 200-week MA
Australian success in suppression of covid-19, in line with the rising prices of commodities, might underpin this cyclically sensitive Australian dollar in the next few months. The bullish technical aspect across different Australian Dollar crosses also propose that the currency is set to continue to outperform the haven linked peers. Following are some of the technical levels that we should watch out for AUD/USD, AUD/JPY, and AUD/CHF.
The weekly chart shows that extra gains are on the cards for the AUD/CHF exchange rates, as traders nudge price through the psychological resistance trading at 0.6800 and 0.6875, the September 2018 low.
With the Relative Strength Index rising to the highest point since 2014 and the bullish crossover take place on the MACD indicator, the least resistance path seems to be in favor of the upside trend as New Zealand Dollar Blow On The Climbing US Yields.
AUD/CHF Weekly Chart
The weekly close over 0.6900 will most likely pave way for the prices to challenge this sentiment, defining the 200 week MA trading at 0.9099. This clearing opened doors for traders to test the 0.7237 Fibonacci (6.8% expansion).
On the other hand, sliding back under 0.6875 might neutralize the short term purchasing pressure and activate a rebound to an 8-week exponential (0.6774) Moving Average and former resistance at 0.6743 (June 2020 peak).
AUD/CHF Daily Chart
A closer look into the daily chart boosts the bullish outlook shown on the weekly timeframe, with the exchange rate continuing to track in the confines of the ascending channel.
Also, the development of the MACD and RSI also shows a ballooning bullish momentum with both the oscillators pushing to the highest levels since 2020.
Gaining a strong rally on the daily basis over 0.6900 will most likely put back the 0.6955 into more focus. The convincing break over modeling the path for investors to probe 0.7072 Fibonacci (50% extension).
Also, incase the psychological resistance at about 0.6900 holds steady, a rebound to the confluent support at 0.6853 (8-EMA) and the channel mid-level can be on the offing. Hurdling that possibly activates the push back to 0.6753 (January low).
Moreover, the AUD/JPY seems set to extend the latest rise higher after breaking out the neckline of this inverse Head & Shoulders reverse pattern modeled over the past 18 months.
With the prices storming over 79.06, which was the sentiment defining 200-week Moving Average, and the Relative Strength Index eyes a nudge into the oversold zone for the 1st time, the impulsive nudge seems likely to happen in the short term.
The weekly close over 80.72 (2019 high) will most likely drive the price to psychological resistance trading at 82.00. A move that is more likely to challenge 61.8% fib. (84.70).