AUD/USD Technical Analysis: Bulls eyeing a sustained breakthrough 1-week old trading range

December 30, 2018

AUD/USD Technical Analysis: Bulls eyeing a sustained breakthrough 1-week old trading range

• The pair regained positive traction at the start of a new trading week and now seems to have found acceptance above 100-hour SMA amid renewed optimism over a possible US-China trade deal.

• Looking at the technical picture, barring a couple of knee-jerk reactions, the pair remained confined within a broader trading range, forming a rectangular chartpattern on the 1-hourly chart.

• Technical indicators on the mentioned chart and the 4-hourly chart have been gaining positive traction, and thus, support prospects for an extension of the intraday positive momentum.

• However, oscillators on the daily chart are still far from recovering from the negative territory and warrant caution amid relatively thin liquidity conditions on the New Year's Eve.

• Hence, it would be prudent to wait for a convincing breakthrough the mentioned range before traders start positioning for any further near-term appreciating move for the pair.

AUD/USD 1-hourly chart