After long-term bearish trend Australian dollar is reversing against the US dollar. As usual, we are analyzing the movement of the pair from technical and fundamental sides.
On the 1D TF bulls are trying to break the trendline down, which was confirming the bearish trend on the market. If bulls succeed – it becomes possible that the long-term bearish trend will change. But, maybe we will see new move up, after the flat. The resistance line is on the level 0,7160 – it was a strong support level twice in 2016 and several times this level was a resistance line in 2004 and 2009.
On the working 4H TF the pair broke above the 9-EMA. The Parabolic SAR changed direction and began to rise. On the other hand, the MACD line started approaching the signal line.
Results: if the pair breaks 0,7160 it is possible to open long positions.
Next week several really important pieces of news will be published. On Monday, the RBA Meeting minutes will be released and on Thursday the US retail sales come out. The forecast for retail sales is positive - +0,7%. If the results are low – the US dollar will likely plummet.