The US dollar seems to have caught up with the Australian dollar, causing the AUDUSD to print significant losses. The market tumbled downward at the opening of the Forex market today. It appears that the Queen’s birthday has paused upside progress in the AUD, while the improving mood of the US dollar has gained momentum.
Key Price Levels:
Resistance Levels: 0.6600, 0.6700, and 0.6800
Support Levels: 0.6500, 0.6400, and 0.6300
Downward Forces Are Making Progress in the AUDUSD Market
Price action in the AUDUSD daily market crashed spontaneously today, as mentioned earlier. This brought the market quickly below technical landmarks that could serve as support for price movement. The last price candle on this chart can be seen tearing through the 20, 50, 100, and 200-day Exponential Moving Average lines (EMA).
The appearance of the last price candle here suggests that downward forces are still active in the session. The mentioned price candle can be seen to have a shadow at its close and no shadow at its opening. Consequently, this points out that headwinds are mounting pressure on the pair. The MACD indicator lines are now trending down toward the equilibrium level, while the last bar appears red. Technically this affirms the dominance of headwinds in this market.
AUDUSD Market Passes More Bearish Tests
The AUDUSD 4-hour market has fallen deeper below the EMA lines. Thus, this sheds some light on the prevailing trend in the market. The last price candle on the chart can be seen lacking both upper and lower shadows. This kind of reveals that price action is experiencing a free fall. Additionally, the Moving Average Convergence Divergence (MACD) indicator lines are now below the equilibrium level as the indicator bars continue to grow taller on the negative axis.
For the most part, technical indicators stay aligned toward a common trend (bearish). However, the week is packed with fundamentals that may alter the trend as they unfolds. This includes the US Pre-Market Open, USD Bill Auction, and Business Confidence data. Traders may want to keep tabs on these to gather impetus as the market eyes the 0.6550 mark.
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