The AUDUSD market bounced upwards during Thursday’s session. As a result, the pair ended the week in the green as the retracement extended until Friday. This is happening at a time when the Aussie side of the market is experiencing mostly negative fundamentals. Therefore, the main factor behind the current market trajectory is the US dollar. The US dollar side of the market weakened following poorer-than-expected jobless claims data.
Key Price Levels:
Resistance Levels: 0.6750, 0.6800, 0.6850
Support Levels: 0.6700, 0.6650, 0.6600
AUDUSD Upside Retracement Stays Vulnerable
After an extended downward correction in the AUDUSD market for the past seven days, the market rebounded positively during the closing days of the previous week with two consecutive sessions in the green.
Nevertheless, considering the market’s overall position, price activity remains vulnerable. The last price candle on the chart is below the middle limit of the Bollinger Bands (BB) indicator. Additionally, the candle shows a noticeable upper and lower shadow, indicating a struggle between market forces. Downward pressure may ultimately prevail.
A Downward Rejection Seen in the AUDUSD Market
In the 4-hour AUDUSD market, price movement surpassed the middle band of the BB indicator. However, the last price candle suggests that the session ended in the red. This may have occurred after price action reached the upper limit of the BB indicator in the previous session.
Despite this, the market remains above the middle band of the BB indicator, even as the bands narrow. Technically, this keeps bullish hopes alive for a potential extension toward the psychological resistance at the 0.6800 price level. However, economic news, such as the OPEC Monthly Report and the Federal Reserve’s speeches, may significantly influence the market as the new week unfolds.
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