Trading activities have started for the week, and the AUDUSD price action seems to have landed on physiological support. On the daily chart, technical indicators are predicting that price action may break through a price physiological support at 0.6631. However, it won’t be corrected to just assume this opinion unless price action has been critically examined. Let’s dive right in.
Major Price Levels:
Top Levels: 0.6670, 0.6700, and 0.6750
Floor Levels: 0.6631, 0.6600, and 0.6550
AUDUSD Price Action Lands on the Support Level of 0.6631
The last price candle on the AUD/USD daily chart has landed on the trend line drawn at the 0.6731 price mark. The opinion that the price may fall below this level stems from the fact that this last price candle is bearish. Also, price action in this market is occurring below the midline of the applied Bollinger Bands indicator. And by indications, such activities portray that the market is bearish. Furthermore, the Moving Average Convergence Divergence (MACD) indicator lines can be seen closing in on each other for a crossover. Should a crossover occur at this point on the Moving Average Convergence Divergence (MACD) indicator, it will suggest that the price may fall lower.
AUDUSD Buyers Are Attempting to Prevent Further Downward Retracement in this Market
By examining the 4-hour AUDUSD market, it could be seen that buyers may anticipate the physiological support of 0.6631 as a potential entry point. Consequently, it appears that price action has rebounded upward at this point. Market participants can now observe that the pair now trades at 0.6641. Additionally, the Moving Average Convergence Divergence (MACD) indicator curve is now about to perform an upside crossover. Meanwhile, the Relative Strength Index (RSI) indicator curves seem to have been preparing for a bearish crossover. Nevertheless, it appears that this move may have been cut short since a green price candle has shown up on this market. However, traders should place an entry at 0.6660 to catch a possible upside retracement toward the 0.6700 price mark.
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