Technical Analysis

AUD/USD Price Analysis – July 20, 2023

By LonghornFX Technical Analysis
Jul 20, 20232 min

Daily Price Outlook

As long as the AUD/USD exchange rate remains above 0.6594, the trading range is expected to remain neutral. The presence of the resistance level at 0.6710 suggests a potential further decline.

However, if the rate breaks below 0.6594, the downward movement from 0.6898 is likely to resume, with the next support level at 0.6457.

The AUD/USD price analysis highlights Australia's employment-driven rebound from the 200-day exponential moving average (EMA) towards 0.6850.

This rebound marks the largest daily gains in a week and ends a four-day losing streak for the currency pair.

The positive surprise from the June Australian jobs report contributes to the positive sentiment. As of the time of writing, the AUD/USD pair is trading near the intraday high of 0.6840, reflecting a 0.90% increase.

It's worth noting that the employment change and unemployment rate in Australia showed positive trends in June, while the participation rate slowed and part-time employment statistics declined.

AUD/USD Price Chart – Source: Tradingview
AUD/USD Price Chart – Source: Tradingview

AUD/USD - Technical analysis

The AUD/USD pair starts the day with an upward rally, breaking above the 0.6780 level and indicating a potential return to the bullish trend. This movement is influenced by positive Australian economic data and supported by the stochastic indicator, suggesting a continuation of the bullish bias and aiming to achieve positive targets around 0.6924.

Therefore, further upward movement is anticipated in the upcoming sessions, unless there is a break below the 0.6780 level and a sustained hold below it.

For today's trading, the expected range is between the support level at 0.6780 and the resistance level at 0.6890.

Overall, the trend for today is expected to be bullish, but it is important to monitor the price action for any potential reversals or shifts in market sentiment.



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