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Market Outlook
Daily Technical Analysis: AUDUSD Taking 2022 by the Bullhorns

Daily Technical Analysis: AUDUSD Taking 2022 by the Bullhorns

31-12-2021 10:15

ZFX - The AUDUSD pair is looking to throttle into 2022 with a long-term bullish bias.

Daily Technical Analysis: AUDUSD Taking 2022 by the Bullhorns
Monthly View of AUDUSD. Graph taken from TradingView.

The all-time-high for the AUDUSD pair was reached way back on Feb. 25 at 0.8006 with a soft resistance of 0.8000. It wasn't until Dec. 3 that the price low was reached (which was also close to a natural support level at 0.7000). If we compare pip ranges of the past three years, we can see that 2020 has 2021 and 2019 beaten with 2260 pips with the former having 1014 pips and the latter 619 pips. We can also look at the other ranges of past years as follow:

  • 1400 pips in 2018
  • 950 pips in 2017
  • 1015 in 2016
Daily Technical Analysis: AUDUSD Taking 2022 by the Bullhorns
Weekly View of AUDUSD. Graph taken from TradingView.

Referring to the chart above showing the weekly view, this year's price high moved to the highest level going back to the week of Jan. 21, 2018.  However, it came up short to the highs reached back in 2017 and 2018 which were at 0.8124 and 0.8135 respectively.

We can see the fall resulted in the price step down towards the 200 and 100 MAs in August.

AUDUSD moved back up to test the 0.7477 to 0.7554 swing area (the price high was 0.75549) as it bounced higher off the low that happened in September. The same high ran into the 200 day on the daily chart seen below:

Daily Technical Analysis: AUDUSD Taking 2022 by the Bullhorns
Daily View for AUDUSD. Graph taken from TradingView.

As AUSUSD fails to extend past the swing area shown in the weekly chart along with the 200 day MA seen on the daily chart shows the path the pair is taking to move lower as we reach the end of the year. We can see that it moved near the converged 100 and 200 week MAs as it further moves to the year's 0.6992. The low we see in the weekly chart was halted by another swing area of 0.66990 and 0.70525. Last year's swing lows stopped very near to the low found in 2021 and support buyers leaned on this.

AUDUSD's final movement shows inclination towards being above the 200 and 100 week MAs at 0.71735 and 0.72183. Right now, at the year's end, it's standing at 0.72528.

But what do all of these charts say about AUDUSD bringing its bullish bias into 2022?

The pair got above the aforementioned MAs showing confidence in the bullish direction but the movement can only continue if the price stays above the MAs.

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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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