While the week seems moderately packed with economic developments that may trigger some movements in the Forex market, the AUD/USD pair seems to maintain a cautious mood at the moment. This could be perceived as the market has been lacking significant movement since the closing of the market on Friday until now. However, this may be due to market expectations ahead of key data such as the US JOLTS Job Openings, US ADP Employment Change, and US ISM Manufacturing PMI.
Key Price Levels:
Resistance Levels: 0.6700, 0.6800, and 0.6900
Support Levels: 0.6600, 0.6500, and 0.6400
AUD/USD Looks Flat
The AUD/USD market looks almost lifeless on the daily price chart. It appears that the US dollar managed to recovery a bit towards the close of last week’s trading activities. Price action halted its upside correction on Friday, as it appears that the US dollar experienced some bullish correction. The market has maintained the same stance until the opening of this week’s trading activity.
However, the market seems to be moving more sideways than all the Exponential Moving Average (EMA) curves. Consequently, despite the minor downward correction, the fact that price action stays above the EMAs suggests that the market may continue upwards. Additionally, we can see that the Stochastic Relative Strength Index (SRSI) lines maintain a fair upside trajectory at the moment. This also points to the fact that the market may extend upward.
AUD/USD Bulls Seem to be Making Their Stand Already
While the AUD/USD market seems a bit flat and sideways, the 4-hour market timeframe seems to reveal that upside forces are taking effect already. The last price candle here seems small, but it has appeared green. Also, it has kept the market above all the EMA lines. On the contrary, the SRSI indicator lines seem to have a different opinion.
The SRSI lines can be seen falling sharply into the oversold region. It should be noted that the lines of this indicator are moving exaggeratedly at such a minute price decline. Nevertheless, considering the position of price action above the EMA lines and the possibilities that are likely to emerge as the week unfolds, it appears that upside bulls are favorably positioned. Consequently, traders may want to prepare to use bullish Forex signals in this market.
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