Points in Australian Dollars:

• The Australian came back to life earlier in the week.
• The AUD/USD is holding above a key support area, while the AUD/JPY remains close to the highs as it tries to support a short-term uptrend.
• The analysis is based on the article’s price action and chart structure. To learn more about price actions or chart patterns, check out our DailyFX Education section

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From hunger to feast in a week. Yes, the holiday may be over, but the response in AUD/USD to the last two-year low last Thursday should encourage bulls.

Last Thursday, AUD/USD hit a two-year low. Prices fell below the major retracement of the Fibonacci setup in that space from the 2020 to 2021 high, but buyers pulled orders above that level later in the week. That long streak Last week’s bottom candle led to the continuation of the bubble this week, and prices rallied. falling over the ledge that keeps the door open for new strategies.

AUD/USD weekly price chart

In the short term, the big question is whether buyers can keep the price above the 0.6850 support level. These fluctuations occurred in May and early June, before stabilizing in July.

The recent breakout of the falling wedge formation shown on the four-hour chart below held open-low support high for an upward retracement, with resistance near 0.7000. air quality.

AUD/USD four-hour price chart

AUD/JPY

While the AUD/USD reset to a two-year low in the recent week, the AUD/JPY remained on a bearish path, helped by weakness in the yen, which remains a dominant theme in FX.

Longer term, there is an important area of ​​current resistance that held highs in April and again in June, with a slight break in this second test. Even greater is the sense of humility behind that second witness who opened the door. it opens an ascending triangle formation that indicates the potential for a breakout.

AUD/JPY weekly chart

On a short-term basis, we may also see a test in a key area of ​​the AUD/JPY chart. And there’s a line connecting the roar to the 11th of July* Which is now reaching the psychological level at the fist of 95.00. A hold here keeps the door open for upside potential with eyes set to 96.57.

AUD/JPY four-hour chart