The Aussie Is Surging To Higher Levels

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Written By
Contributor Image
Written By
Tran Dai Phat
Tran Dai Phat, a Forex Educator at FXTM with a Bachelor's Degree in Investment, brings multiple years of financial market experience to the aid of aspiring traders everywhere. He conducts research on stocks, forex, and commodities, sharing his insights to empower traders and encourage the development of simple strategies for maximizing trading potential.

The Aussie on the 4-Hour Chart has been in an uptrend since 20 August 2021 when it registered the low price at 0.71053, followed by a series of higher tops and higher bottoms.

On 1 September 2021, the Aussie recorded the high price of 0.73829.

Technical Price Analysis

When applying Oscillator Analysis to the price chart, one can see that price is trading above the SMA 60 period Moving Average line, a fact which confirms the Aussie’s upward direction.

Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values above the zero line which hints to the bullish bias of the Aussie.

Additionally, the Relative Strength Index (RSI) Oscillator registers values above the fifty line which indicates positive sentiment.

All three technical indicators are in agreement with regards to the upward bias of the pair.

Price Targets

Three price targets may be calculated upon applying the Fibonacci tool to the price chart.

  1. The first price target is estimated at 0.73166 (161.8%).
  2. The second price target is seen at 0.73754 (261.8%).
  3. The third price target is projected at 0.74707 (423.6%).

While the first target and the second have already been breached, the Aussie is currently trading above the uptrend line.

The presence of the Morning Star Pattern hints at a potential rally to the upside.

Its current price is 0.95 % above the last week’s close after a sharp rise in price during a period of heavy buying.

Of course, supply and demand as well as the crowd sentiment will determine the future course of Aussie.

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