While the US dollar continues to lack bullish sentiment, this has allowed the AUDUSD to break the resistance at the 0.6700 price level. The position of the market at this point hints at the possibility of additional price increases. However, this will be dependent on what the new week has in store on a fundamental basis.
Key Price Levels:
Resistance Levels: 0.6800, 0.7000, and 0.7200
Support Levels: 0.6600, 0.6400, and 0.6200
AUDUSD Bulls Look Primed for More Traction
The AUDUSD pair has been on an extended upside correction since the market jabbed the support at the 0.6300 mark. Since then, the market has been on a steady upside retracement. With just a few hours into the new week, the market has broken a 5-month-old resistance at the 0.6700 price level. At this point, market activity continues to occur above the Guppy Multiple Moving Average (GMMA) lines.
Additionally, the Stochastic Relative Strength Index (SRSI) indicator lines appear to have just delivered another bullish crossover in the overbought region. Meanwhile, the size of the green price candle that has appeared for the ongoing session suggests that bullish momentum is viable.
The AUDUSD Market Stays on an Upward Path Despite Facing a Rejection
Price action in the AUDUSD 4-hour market reveals that price activity has stayed in pursuit of higher marks. The last two price candles here can be seen appearing red. Consequently, this points out that a downward rejection has occurred. However, the last price candle on this chart seems to have appeared above the previous one. By implication, this has an overall upside effect on the market as opposed to the expected downward effect.
Also, the SRSI indicator has delivered a crossover, which ought to strengthen bearish momentum. But for some reason, this has failed to result, as the market maintains an overall upside trajectory. Nevertheless, the information gathered from Powell’s speech may impact the market. Traders can monitor this to decide if bullish Forex signals can still be useful as the price heads towards the 0.6750 mark.
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