The bullish sentiment surrounding the US dollar due to Trump’s re-election has waned. The week ended with downward pressure eroding most of the previous gains. The US is set to review inflation figures and the Consumer Price Index, which could further impact the AUDUSD pair in the coming week.
Key Price Levels:
Resistance Levels: 0.6600, 0.6700, 0.6800
Support Levels: 0.6500, 0.6400, 0.6300
AUDUSD Retreats Below MA Curves
The AUDUSD pair experienced a significant price surge on Thursday. This was largely attributed to the excitement surrounding Trump’s re-election. However, bearish forces emerged in the following sessions, pushing the pair below all Moving Average (MA) curves.
This indicates that downward pressure is likely to dominate, driving the pair lower. Additionally, the Stochastic Relative Strength Index (Stochastic RSI) has formed a bearish crossover below the 80 level. The 20-day and 200-day MA lines are converging above the current price, further strengthening bearish sentiment.
The Upside Forces in the AUDUSD Market Look Vulnerable
The AUDUSD 4-hour chart shows that Friday’s session ended with a green candle. However, the appearance of the candle suggests that downward pressure remains dominant. The MA lines are still above the price action, aligning with the bearish outlook from the daily chart.
The Stochastic RSI lines are continuing to fall deeper into the oversold region. Technically, this indicates that bearish forces are in control, suggesting a potential move towards the 0.6545 support level. Traders should monitor economic data, such as the CPI, for further insights.
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