Price action in the AUDUSD daily market paused its upside retracement last Wednesday. This signals an improvement in sentiment surrounding the US dollar, presenting a counterbalancing force against the previously prevalent tailwind that propelled price action from the support at the 0.6000 mark.
Key Price Levels:
Resistance Levels: 0.6600, 0.6700, and 0.6800
Support Levels: 0.6500, 0.6400, and 0.6300
AUDUSD Bearish Stance May Be Strengthening
Since last Wednesday, the AUDUSD market appears to be experiencing some losses as the US dollar gains momentum. A closer examination of price movement over the past three sessions reveals a gradual strengthening of downward momentum. The last price candle on this chart appears significantly larger than the previous two.
However, despite this, the pair remains above the Guppy Multiple Moving Average (GMMA) lines. Similarly, the Stochastic Relative Strength Index (SRSI) lines are still in the overbought region. Additionally, we can observe that the lines of this indicator haven’t descended much from their lofty position near the 100 mark.
AUDUSD Market Shows Indecision
While examining the AUDUSD 4-hour market, one can observe consolidation as the market exhibits limited movement even on a smaller timeframe. Nonetheless, the pair continues to trade above the GMMA lines, maintaining favorable upside anticipations. The SRSI lines have crossed over in the oversold region, with the leading line previously showing upward movement.
However, the leading line of the indicator appears to be deflecting towards the lagging one, indicating a potential bearish crossover. Considering the economic calendar, the pair may extend a downward correction towards the 0.6500 threshold. Consequently, this presents a noteworthy opportunity for bearish Forex signals at the moment.
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