The US economy has been showing impressive developments in recent times. This has put a limit on upside progress in the AUDUSD market. The US Dollar Index has eased, but emerging economic data has shown that the Fed may slow down the pace of future interest rate cuts as the economy continues to take on a more healthy look. Meanwhile, the Australian economy continues to grow at a slower rate, and inflationary pressures are still present.
Key Price Levels:
Resistance Levels: 0.6550, 0.6600, 0.6650
Support Levels: 0.6500, 0.6450, 0.6400
AUDUSD Retracts After Testing the 0.6545 Resistance
Price activity in the AUDUSD daily market had seen an upward rebound after the market touched down at the 0.6445 support level. The last price candle can be seen appearing bearish while appearing below all the Moving Average (MA) lines.
Meanwhile, the Stochastic Relative Strength Index (RSI) lines can be seen already converging for an upside crossover just below the 50 mark of the indicator. However, considering the appearance of price action below the MA lines, downward forces are still having the upper hand, and as a result, downward momentum may continue in the market. This will eventually nullify the approaching bullish crossover on the Stochastic RSI indicator.
Bears in the AUDUSD Market Are Making Progress
In the AUDUSD 4-hour market, we can see that price action has risen above the 20- and 50-day MA curves. However, the 100-day MA line has presented a strong resistance to price movement. Consequently, the market rebounded off it in the past two sessions.
The ongoing session has shown that the market continues to edge lower. At the same time, the Stochastic RSI lines can be seen rising upwards. This is a false signal and indicates that the market is predisposed to falling lower. Therefore, traders can target the 0.6475 price level.
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