by Alex Davies on November 19, 2018

AUDUSD Analysis – breach of the resistance!

We touched upon AUDUSD a few days ago. The price was nearing a point where it could trigger a major buy signal. If the price were to cross the horizontal resistance shown on the graph below with an orange line, it would signal a positive sentiment and more growth to come.

AUDUSD Analysis - breach of the resistance!

This is indeed what happened, the price breached the resistance. Investors might become wary of the slight pullback that the price experienced, but this is completely normal behavior for a price in such situations. The price is simply testing the resistance it just broke as a newly established support. As long as the price remains above the line, the buy signal is still on. If the price closes a day at the current level or anywhere above it, it will reinforce the buy signal. In general, we are maintaining a positive outlook on the price movements of the currency pair.

By Alex Davies

Alex Davies is a long-time trader with a background in statistical analysis. Davies has worked as a financial analyst since 2014 and has been writing technical analyses for various publications since 2015. Davies writes on different financial instruments including stocks, cryptocurrencies and currency pairs.

More content by Alex Davies

Comments (0 comment(s))

Copyright 2020