Asia Day Ahead: AUD/USD Hovering Below Resistance While USD/SGD Trades on Higher Lows
AUD/USD Technical Analysis: Daily Chart
Upon the daily performance of the AUD/USD, it appears that the currency pair is currently hovering below a key resistance level near the 0.8000 mark. The price action over the past few trading sessions has shown signs of consolidation as the pair struggles to breach this important level.
The Relative Strength Index (RSI) on the daily chart is hovering around the overbought territory, indicating potential exhaustion in the current upward momentum. This suggests that a pullback or consolidation phase may be in store for the AUD/USD as it attempts to gather more strength to break above the resistance level.
In terms of support levels, the 0.7900 level could act as a key support zone for the AUD/USD in case of a pullback. A break below this level could potentially signal further downside momentum towards the 0.7800 support level.
Overall, the technical outlook for the AUD/USD remains relatively bullish, with a potential break above the 0.8000 resistance level likely to open the doors for further upside towards the next resistance level at 0.8100.
USD/SGD Technical Analysis: 4-hour Chart
Turning our attention to the USD/SGD currency pair on the 4-hour chart, we can observe a series of higher lows being formed, indicating a potential bullish trend in the making. The price action has been steadily climbing within an ascending channel, suggesting a strong uptrend in the near term.
The Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart is currently showing a bullish crossover, further supporting the upward momentum seen in the USD/SGD pair. This indicator suggests that buyers are in control of the market, pushing the price higher.
In terms of resistance levels, the USD/SGD pair could encounter some selling pressure near the 1.3600 level, which has acted as a key resistance zone in the past. A break above this level could pave the way for further gains towards the next resistance level at 1.3700.
On the downside, the 1.3500 level is likely to provide strong support for the USD/SGD pair in case of a pullback. A break below this level could signal a shift in the bullish momentum, potentially leading to a retest of the lower boundary of the ascending channel.
In conclusion, both the AUD/USD and USD/SGD currency pairs exhibit interesting technical patterns that traders can monitor closely for potential trading opportunities. The AUD/USD is consolidating below a key resistance level, while the USD/SGD is trading within an ascending channel, indicating a bullish trend in the making. Traders should consider these technical factors along with market fundamentals when making trading decisions on these currency pairs.
