For nearly two weeks, the AUDUSD market has been consolidating below the resistance level at the 0.6600 price level. This also falls below some technical landmarks. In fact, during the previous week, price action in the market saw significant contractions as volatility dwindled. However, the new week seems to have brought some fresh air to the market. Let’s dive in for a closer look.
Key Price Levels:
Resistance Levels: 0.3485, 1.3500, and 1.3600
Support Levels: 1.3450, 1.3400, and 1.3300
AUDUSD Witnesses Modest Downward Correction
While volatility seems to have strengthened in the AUDUSD daily market, it could be seen that a moderate correction has occurred in the market. This is evident through the upper shadow on the last price candle on this chart. While the session retains most of the gathered profits, in the ongoing session, the market, from a larger perspective, seems oriented towards breaking the resistance at the 0.6600 mark.
In support of this opinion, the Stochastic Relative Strength Index (SRSI) lines are still rising into the overbought region. As it stands, all technical indicators on this market still point to the fact that upside forces are viable and will likely advance price action on its bullish path.
AUDUSD Retains Gaze at 0.6600 Mark
In the AUDUSD 4-hour market time frame, it could be seen that the ongoing 4-hour session has printed minimal losses. However, a close examination of the body position of the price candle indicates that it appears closer to the upper shadow than the lower one. Likewise, this price candle stands at a significant distance above the 21-day MA line. Meanwhile, the SRSI indicator lines are still racing further into the overbought region.
Adding to the fact that price action is positioned above the 21-day MA line, it can be assumed that downward forces can still be easily overpowered by ensuing fundamentals. Traders can still come up with a forex signal that has the 0.6600 mark as a target. However, due attention should be paid to emerging fundamentals that may move the market.
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