Home Finance News AUD/USD and AUD/JPY Surge, but Can They Maintain Momentum?

AUD/USD and AUD/JPY Surge, but Can They Maintain Momentum?

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AUD/USD and AUD/JPY Surge, but Can They Maintain Momentum?

The Australian Dollar has shown some interesting technical developments against the US Dollar and the Japanese Yen. On the daily chart, AUD/USD has experienced a surge, forming a Bullish Engulfing candlestick pattern. This pattern could indicate a potential reversal, but further confirmation is needed. The 50-day Moving Average will be a key level to watch, as it may act as resistance and push prices lower. On the other hand, a break lower could open the door to the November low of 0.6272.

Meanwhile, AUD/JPY has confirmed a breakout above a Symmetrical Triangle chart formation, extending its uptrend. However, the pair is facing immediate resistance at the 14.6% Fibonacci retracement level. Negative RSI divergence suggests that upside momentum is fading, which could lead to a turn lower. In such a scenario, immediate support can be found at the 23.6% Fibonacci level. If the pair continues to move higher, it may revisit the current 2023 peak of 97.67.

Overall, these technical developments in AUD/USD and AUD/JPY point to potential reversals and resistance levels that traders should watch. Confirmation is needed to determine the direction of the Australian Dollar against these currencies.

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