As the Forex market awakens for the new trading week, the AUDUSD pair seems to remain in deep waters, as seen from the previous week’s trading. Even at this point, bearish pressure seems overpowering in this market. The delay in the Federal Reserve rate cut has strengthened the dollar against most of its pairs, creating a strong headwind even in this market.
Key Price Levels:
Resistance Levels: 0.6500, 0.6600, and 0.6700
Support Levels: 0.6400, 0.6300, and 0.6200
AUDUSD Hits a 4-Month Low
The AUDUSD market slumped significantly during last week’s Friday, following the news of the Fed rate cut delay. This brought the pair to a 4-month low on the daily chart. At this point, the pair trades below the 0.6500 threshold and the Guppy Multiple Moving Average (GMMA) lines. By implication, this shows that the market is in a downtrend.
In addition, the Stochastic Relative Strength Index (SRSI) lines also reveal the dominant trend in this market by plunging steeply towards the oversold region. Consequently, this makes the AUDUSD look helpless. With a quiet Aussie side to the market in terms of fundamentals, traders may have to brace for more price declines in this market.
AUDUSD Bearish Momentum Cools as Price Action Nears the 0.6450 Mark
While price action retraced to lower levels more vehemently in the previous session, it appears that the closing session for the previous week had decreased momentum. Nevertheless, the AUDUSD market remains red as price action remains subdued in the GMMA indicator lines.
Likewise, the SRSI indicator lines are still plunging towards the oversold region. Consequently, this maintains bearish consistency. Therefore, coupled with the fact raised earlier above, the pair may fall lower, making bearish Forex signals quite the catch at this point as the market may reach the 0.6400 mark.
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