The AUDUSD market has continued to plummet, showing bearish dominance. This is happening at a time when the weakness of the US dollar should have assisted the pair in some bullish recovery. This suggests that the downward trend hasn’t resulted solely from the USD side of the market but also from the Aussie side. This can be attributed to slower GDP growth, inflation, and cautious monetary policies by the RBA.
Key Price Levels:
Resistance Levels: 0.6400, 0.6500, 0.6700
Support Levels: 0.6300, 0.6200, 0.6100
AUDUSD Extends Bearish Corrections Below the $0.6400 Price Level
The AUDUSD pair had earlier recovered above the 0.6445 mark on Friday but quickly relinquished the recovery yesterday. The ongoing session has produced a continued minimal downward retracement. The position of price action below all the Moving Average (MA) lines suggests that downward forces are firmly in control of the market.
Likewise, the Stochastic Relative Strength Index (RSI) lines can be seen falling sharply into the oversold region of the indicator. Consequently, this affirms the dominance of downward forces in this market, hinting at further price declines.
AUDUSD Bullish Rebound Fails
On the AUDUSD 4-hour chart, it is evident that price action had earlier rebounded upward. This occurred for two consecutive sessions but failed in the third. This is a result of price action being in bearish territory. The ongoing session has signaled that downward forces are ready to push the market lower. The Stochastic RSI curves are still in the oversold region of the indicator.
Also, it had earlier attempted a bullish crossover there with some distance between the lines of the indicator. Technically, this suggests that bears are still likely to stay dominant, as the crossover may be aborted, seeing as price action is below all the MA curves. Therefore, traders can target the support level at the 0.6350 price level.
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