iNVEZZ.com August Monday 26th: A downwards movement last week pushed the AUD/USD to test the strong 0.9000 psychological and support level. By the end of the week the pair had lost 1.69 percent. The weekly candle opened at 0.9195, hit a high at 0.9232 and a low at 0.8930 and closed at 0.9026. The pair fell from the 0.9200 level, where strong resistance occurred. The 0.9000 level was breached, but subsequently the price closed above this mark.
Today, during Asian trading the price reached an intraday high at 0.9043, testing the 0.9040 resistance. The pair failed to continue higher and since has been dropping. At press time the pair is changing hands at 0.9012.
The decrease is supported by the MACD (9,12,1) oscillator being in a divergence mode on the hourly timescale. The MACD is also negative on the 1H, 4H and daily charts. Over the same time periods the 89- and 200-period simple moving averages are floating above the price action, adding to the bearish pressure.
Since 21 August the AUD/USD has been forming a wedge pattern and is currently heading towards the lower line of the figure. The line is close to the 0.9000 level, which in the event of a breakthrough will witness a fall towards the 22 August low of 0.8930 first and the 5 August low of 0.8846 next.
Resistance levels: 0.9040, 0.9095 and 0.9135.
Support levels: 0.9000, 0.8940 and 0.8920.