A wave of positive economic data has reinvigorated the US dollar over the past week, spurring a notable price rebound of the psychological price resistance level at the 0.6800 mark in the AUD/USD daily market. More interestingly, the economic improvement in the United States is said not to influence speculations surrounding the Fed’s interest rate decision, which is set to be released later this month.
Key Price Levels:
Resistance Levels: 0.6800, 0.6900, 0.7000
Support Levels: 0.6600, 0.6500, 0.6400
AUD/USD Bears Likely to See More Gains in the New Week
Price activity in the AUD/USD daily market has rebounded off a multi-month resistance at the 0.6800 mark. Nevertheless, the pair still trades at a considerable distance above the middle limit of the Bollinger Bands (BB) indicator. Meanwhile, the last price candle on the chart reveals that downward forces are significant.
Similarly, we can see that the Stochastic Relative Strength Index (Stochastic RSI) indicator lines are steadily trending downward, with the leading line of the indicator touching the 80 mark. This hints that price action may proceed towards lower price levels.
AUD/USD Is Trying to Retain Support Above 0.6750
Price action in the AUD/USD 4-hour market has approached the support level at 0.6750. However, the last price candle rebounded off the technical support level at the 0.6750 threshold. This price level also seems to coincide with the lowest limit of the BB indicator. The last price candle on this chart reveals that downward forces are active and trying to push prices lower.
Simultaneously, the Stochastic RSI lines can be seen plunging steeply into the oversold region. However, traders may want to stay abreast of fundamentals (GDP and PMI) from the Aussie side of the market for positive cues concerning a continued upside retracement towards 0.6790. Otherwise, the market may even break the support at the 0.6750 mark
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