AUDUSD Bulls Are Looking Lively

Even though the US dollar has recently gained some momentum, the AUDUSD has maintained an impressive performance against it. The market can be seen trading above a notable technical landmark. Also, other technical indicators on the market’s daily time frame seem positively biased. Let’s dive deeper.

Key Price Levels:
Resistance Levels: 0.6700, 0.6800, and 0.6900
Support Levels: 0.6600, 0.6500, and 0.6400

AUDUSD May Extend Upside Correction Towards the $0.6700 Mark

It could be inferred that the AUDUSD market ended the previous week on a positive note. As a result, price action now stands where it seems easier for upside forces in the market to propel it. The last price candle on the chart can be seen standing above the 20-day Exponential Moving Average (EMA) line. Also, this lies above all other EMA lines.

Meanwhile, the Stochastic Relative Strength Index (SRSI) indicator lines can be seen maintaining an upward trajectory above the 70 level of the indicator. Technically, trading indicators are in agreement concerning the possibility of continued gains in upside traction.

AUDUSD Sees a Moderate Downward Correction

During the last 4-hour session of the previous week, the AUDUSD market saw a moderate downward rejection. Nevertheless, the pair continues trading at some distance above all the EMA lines. It only happens that the downward correction took out all the gains from the previous session. Furthermore, the SRSI indicator lines can be seen maintaining an upward trajectory, with the leading line already in the overbought region.

The distance between the leading and lagging lines seems to suggest that the market has healthy volatility. Technically, this means that upside forces have a chance of retaining the lead towards the 0.6700 price level. However, there are some key US data, such as ISMs and S&P Global Manufacturing PMI, that are set to roll out on Monday. This may deliver new impetus to the market, so traders may want to monitor them.

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