AUDUSD Faces Challenges Around the 0.6700 Mark

The US dollar has been showing a fair gain in upside momentum, aided by improving stocks. Consequently, this has limited upside progress in the AUDUSD market, as the pair faces strong rejection around the 0.6700 price level. Let’s take a look at what the new week may present to traders.

Key Price Levels:
Resistance Levels: 0.6750, 0.6800, 0.6850
Support Levels: 0.6650, 0.6600, 0.6550

AUDUSD Upside Rebound Looks Challenging

The AUDUSD market rebounded upwards after testing the lower limit of the Bollinger Bands. The market progressed upward until it encountered the psychological resistance level at 0.6700. The behavior of price action from Thursday’s session through Friday suggests that this price level harbors significant headwinds.

This led to considerable downward price contraction, as revealed by the last two price candles on the chart. The Stochastic Relative Strength Index (Stochastic RSI) lines can be seen rising upward in the oversold region. While this may signal that upside forces are on the rise, it is important to note that price activity remains below the middle limit of the Bollinger Bands. Consequently, this suggests that downward forces may still be formidable.

The AUDUSD Upside Rebound Continues to Look Threatened

While price activity in the AUDUSD market stands above the middle limit of the Bollinger Bands, it seems the market has consolidated between the upper and middle limits of the indicator. The last price candle on the chart appears small and is even contracting, revealing the effect of downward forces.

Meanwhile, the Stochastic RSI can be seen descending from the overbought region. Nevertheless, price action remains above the middle limit of the Bollinger Bands, which may offer some protection ahead of a series of market-influencing fundamentals, including Fed speeches and auction bills arriving today. As a result, traders can aim for the 0.6750 mark but should proceed with necessary precautions.

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