Is there sufficient momentum for AUD/USD, AUD/JPY to sustain their surge?


The Australian Dollar (AUD) is experiencing interesting technical developments against the US Dollar (USD) and Japanese Yen (JPY). On the daily chart, AUD/USD saw a surge and formed a Bullish Engulfing candlestick pattern. This could potentially signal a reversal, but further confirmation is needed. Positive RSI divergence and the inability to confirm a breakout under the 78.6% Fibonacci retracement level suggest a fading downside momentum. The 50-day Moving Average could act as resistance, potentially leading to a pivot lower, or a break lower could open the door to testing the November low.

Meanwhile, AUD/JPY confirmed a breakout above a Symmetrical Triangle chart formation. This indicates a continuation of the dominant uptrend. However, negative RSI divergence suggests fading upside momentum, which could lead to a turn lower. Immediate support is seen at the 23.6% Fibonacci retracement level, while a continuation higher could bring the focus to the current 2023 peak.

In conclusion, the Australian Dollar’s performance against the US Dollar and Japanese Yen is presenting an interesting technical landscape. While there are early indications of potential reversals in both AUD/USD and AUD/JPY, further confirmation is needed in order to determine the direction of future price movements.

Note: This is a unique summary of the news article and it has been expanded to three paragraphs without changing the context.

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