AUDUSD Bears Maintain a Strong Grip on Price Movement Despite Seeing Minimal Gains

The impressive bullish run in the US dollar has bearishly impacted price movements in the AUDUSD market. This move was motivated by the expectation of Trump’s reelection and the impressive performance of the US dollar index as it reached a two-year high. However, the AUDUSD market is seeing some minimal rebound at the moment; price activity here seems quite subdued from a broader perspective.

Key Price Levels:

Resistance Levels: 0.6300, 0.6400, 0.6500

Support Levels: 0.6200, 0.6100, 0.6000

AUDUSD Market Recovers Above the 0.6200 Threshold

The AUDUSD market has continued retracing lower price levels since around mid-September when the USD gained bullish momentum. The market quickly retraced below all the Moving Average (MA) lines and has spent most of the time there ever since.

However, the market dipped below the 0.6200 price level on Friday but bounced back above that price level in the ongoing session as we entered into the new week. Nevertheless, price action remains at a far distance below the MA lines and, as such, maintains the opinion that upside price forces can easily be muscled down. Also, this maintains the downward trajectory in this market.

AUDUSD Respects the 0.6200

The AUDUSD 4-hour market can be seen consolidating mostly above the technical support level at the 0.6200 price mark. As a result, the last price candle can be seen placing the current price of the past just above the 20-day MA line. The mentioned price candle has appeared quite small and also lies below most of the MA curves.

Meanwhile, the Stochastic RSI lines are in the overbought region of the indicator. This shows that at such a minimal recovery, upside forces are already exhausted. In addition, the lines of the Stochastic RSI indicator have delivered a crossover there, with the ensuing lines now trending sideways. Technically, a downward force has a higher probability of staying in the lead. As the market may head toward the 0.6150 price level.

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