During last week’s trading activities, AUDUSD corrected off a mounted defense line at the 0.6300 price mark. However, as price action in the market neared the resistance at the 0.6380 mark, the upside correction started losing momentum. This has caused the pair to start consolidating. What can we expect in the new week?
Major Price Levels:
Resistance Levels: 0.6362, 0.6400, and 0.6450
Support Levels: 0.6330, 0.6300, and 0.6270
AUDUSD Flats Out Near the 0.6380 Mark
As price movements in the AUDUSD market approached the 0.6380 mark, price action continued to lose vigor. The latest trading session is represented by a green price candle with a tiny body. Comparing this with the price candles of the past three trading sessions, one can easily perceive a considerable decline in price movements.
To further buttress this, the Standard Deviations curve can also be seen turning almost flat to the side, below the 0.00500 mark of the indicator. Also, price action in this market can be seen below the 50-day Moving Average (MA) line, which generally suggests that price action may still be under the control of downward forces.
AUDUSD May Resume Heading South
On the AUDUSD 4-hour market, price action seems set to retrace lower support levels. Although the last red price candle can be seen appearing very close to the 50-fay MA line, it still falls below this indicator line.
Meanwhile, the lines of the Stochastic Relative Strength Index (RSI) indicator lines can now be seen falling deeper into the overbought region, following a failed upside crossover. Consequently, this pair may revisit the 0.6300 mark; however, should the US dollar lose momentum, the upside correction may resume. However, given the current indications from technical indicators, a continued upside correction isn’t likely to occur.
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