The U.S. dollar has maintained its strength, which has dampened bullish momentum in the AUDUSD pair. The dollar has been gathering traction as the U.S. election draws closer. Additionally, geopolitical tensions in the middle east appear to be intensifying recently, which has heightened the safe-haven demand for the dollar among investors.
Key Price Levels:
Resistance Levels: 0.6700, 0.6800, 0.6900
Support Levels: 0.6550, 0.6450, 0.6350
AUDUSD Bears Are Looking Robust
Price action in the AUDUSD market has been moving downward since the market tested the resistance level at 0.6900. The closing session on Friday saw sellers securing considerable profits. The latest price candle on the chart lacks a lower wick, while an upper shadow is present, which suggests a market condition characterized by strong downward pressure originating from the U.S. dollar side.
Furthermore, the Stochastic Relative Strength Index (Stochastic RSI) lines are seen moving downward toward the 0.00 level on the indicator. This indicates that the bearish outlook for this market remains strong.
The AUDUSD Market Shows Renewed Bearish Momentum
The AUDUSD 4-hour chart indicates that prices have consistently remained below the middle line of the Bollinger Bands. The market has rebounded firmly off this resistance in the last three sessions. The last two candles on the price chart appear as red candles without any shadows, implying that this pair may be in a freefall.
Additionally, the Stochastic RSI lines have shown a bearish crossover above the 50 level on the indicator, and while the crossover is relatively recent, price action has already moved significantly. This points to a strong downward momentum. Considering the market’s volatility, it appears that price action may descend below the 0.6600 level in the upcoming week, possibly approaching the 0.6550 level.
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