AUDUSD Remains Above the 0.6700 Threshold

The AUDUSD market remains in the green, largely due to the market’s anticipation of the Fed reducing interest rates before the year’s end. This has allowed the pair to extend upside gains as the US dollar continues to appear weak. With some impetus expected from the Fed’s Daly speech, the NY Manufacturing Index, and US auction bills, let’s see what may be expected in the market in the near term.

Key Price Levels:
Resistance Levels: 0.6800, 0.6900, and 0.7000
Support Levels: 0.6700, 0.6600, and 0.6500

AUDUSD Looks Prepared to Break Above the 0.6800 Threshold

While the AUDUSD market has presented moderate gains since surpassing the 0.6700 technical level, it appears that the 0.6800 price level has presented strong resistance to further upside progress. The market challenged this resistance last Thursday but was strongly rejected.

However, Friday’s session ended with the market re-approaching the price level and recording moderate gains. Trading activities remain above the Exponential Moving Average (EMA) curves at a considerable distance. Additionally, the Stochastic Relative Strength Index (SRSI) recently delivered a new upside crossover in the overbought region, suggesting renewed upside momentum in the market.

AUDUSD Witnesses a Moderate Downward Correction on the 4-hour Chart

Although the market remains significantly above the EMA lines even on the 4-hour chart, downward forces are already exerting some pressure. This has resulted in a red-price candle for the latest session in this market. The SRSI indicator lines have now converged for a crossover below the 50 level of the indicator.

Although a bearish crossover hasn’t occurred yet, continued bearish pressure could eventually lead to one. Consequently, this would strengthen bearish sentiment in the market and may drive prices lower. However, the needed impetus will likely emerge tomorrow from the aforementioned fundamentals. In the meantime, traders may keep their target at the 0.6800 mark.

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