The trading activities for AUDUSD last week concluded on a bearish note as the dollar gained strength against the more dovish Australian dollar. This downward pressure pushed the pair’s price to the support level of $0.6300. The question now is whether an upside correction is on the horizon.
Key Price Levels:
Resistance Levels: 0.6350, 0.6400, and 0.6450
Support Levels: 0.6302, 0.6250, and 0.6200
AUDUSD Defends Its Final Support
During the past week, price action in the AUDUSD market gradually declined, reaching the crucial support level at $0.6300. This drop followed an attempt by price action to correct towards the resistance at $0.6800. Presently, on the daily chart, price action rests at $0.6300, positioned below the Moving Average (MA) curve.
However, it’s important to note that the most recent bar on the Moving Average Convergence Divergence (MACD) indicator has turned pale red, signaling a weakening of downward forces in the market. This shift may lead to a rebound at this juncture.
AUDUSD’s 4-hour Market Presents a Contrast to the Daily Market
The AUDUSD 4-hour market exhibits a different perspective compared to the daily chart for this pair. Here, it is evident that the MACD lines are above the equilibrium level, and the height of the bars in this indicator suggests a decrease in volatility alongside available upside momentum.
Despite this divergence between the two examined time frames, the market appears poised for a potential rebound towards $0.6400.
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