AUD/USD forecast for January 27, 2021
Looking at the chart on the weekly time frame, we see that the last couple of weeks have not shifted much, but the chart is calm and moving, forming a triangle on the chart, which means that there will soon be a major shift in the chart. Break up outside the triangle pushing the pair to 0.80000, where our target from January 2018 is 0.81300. Break below the bottom line of the triangle, and then we see the AUD/USD pair in the zone around 0.75000. Well, it still has the support of all moving averages on this time frame. The bullish scenario’s continuation is very likely, but we will not rule out a smaller pullback.
We see the AUD/USD pair moving in an ascending channel bouncing off the bottom and top lines on the daily time frame. The AUD/USD pair is currently moving in lateral consolidation approaching the bottom line of support. Within that channel, we can draw a smaller trend line on the upper side of the consolidation, and it is our resistance on the upper side for now. A break above that line is a sign for us to continue the bullish trend with targets above 0.79000 approaching the psychological level at 0.80000.
In the four-hour time frame, we see a growing parallel channel, and that the AUD/USD pair is now on the bottom line of the channel, where we can now expect some major shift in the chart soon. At the bottom of this consolidation, we see that it has support at 0.76500 and that the AUD/USD pair from there manages to bounce up. As we can see, we need a break above the consolidation line as a sign for the bullish trend to continue. We can see the bearish scenario if we see a break in the chart below the bottom line of the trend with the first target at 0.70000 psychological level for investors and traders.
From the news for today, we can single out the following: Australian business conditions rose further in December to reach the highest level since the end of 2018, which signals a strong momentum in economic recovery, the results of a study by the National Bank Australia showed on Wednesday. The business conditions index reached 14, the highest since September 2018 and above the November estimate of 7. Consumer prices in Australia rose 0.9 percent year-on-year in the fourth quarter of 2020, the Australian Bureau of Statistics said on Wednesday. Exceeding expectations of 0.7 percent, which would be unchanged from K3. At the quarterly level, inflation also rose 0.9 percent – beating forecasts by 0.7 percent and lower than 1.6 percent in the previous three months.
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