Last week, AUD/USD price action stumbled upon headwinds, and this caused a significant downward retracement of prices. Nevertheless, indications in this market suggest that buyers will gather some short-term profits ahead of related fundamentals this week.
Major Price Levels:
Resistance Levels: 0.6699, 0.6720, and 0.6760
Support Levels: 0.6670, 0.6630, and 0.6600
AUD/USD Buyers Are Attempting to Resist a Further Downward Retracement
The AUD/USD price action had fallen through the Fibonacci Retracement level of 61.80 as support three trading sessions ago. Nevertheless, at this point, the pair seems to be making attempts to recoup previous losses.
Although price action is now significantly below the 9- and 21-day Moving Average curves, a green price candle has just appeared as trading activities for the week began. This has pushed prices near the 0.6700 mark.
At this point, the Moving Average Convergence Divergence (MACD) indicator still maintains the opinion that the headwind is still strong in this market. Consequently, the staged resistance may fail to hold.
Early Gains Appear Possible in the AUD/USD Market
Meanwhile, the AUD/USD 4-hour market seems to reveal that the observed resistance in this market has the potential to grow to be more significant ahead of determining fundamentals. Here, we can see that the last price candle has placed prices in this market above the 9-day MA curve on this chart.
Meanwhile, the MACD lines are now rising toward the equilibrium level of 0.00 following an upside crossover. Also, the bars of the indicator are now green and are growing taller. This points out that upside momentum is growing in this market.
The trend may continue ahead of significant economic data due to roll out later this week. As a result, the market may capitalize on this to recoup some of the previous losses. Consequently, prices may retrace the 0.6750 mark.
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