AUDUSD The 1D MA200 is the pivot level

20 Jan 2022AUDUSD has been trading within a Channel Down since the February 25 2021 High. The price has been rallying since the December 06 low and it trading above the 1D MA50 (blue trend-line) and towards the 1D MA200 (orange trend-line). The latter is the key technically, as it is a pivot point between the long-term bullish and long-term bearish trend.

A rejection there would also make a perfect Lower High on the Channel Down and should translate into a new round of long-term selling towards the 0.7000 Support and possibly lower to form a Lower Low on the Channel Down. On the other hand, if a 1D candle breaks and closes above the 1D MA200, that would be the first time since June 28 to do so, and should be considered a bullish break-out signal towards the 0.78235 Symmetrical Resistance.

The reason behind using those symmetrical levels is because the pattern since the October 28 Lower High resembles the formation of September - October 2020, when a break above the (dashed) Lower Highs trend-line, initiated a strong rally.



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