Ever since price activity in the AUD/USD market tested the price level at the 0.6866 mark, has been spiraling downward, opening the gates for headwinds. This has handed the bears the lead in this market. Additionally, it appears that the sentiment surrounding the US dollar has improved, putting pressure on the otherwise fairly stable Aussie.
Key Price Levels:
Resistance Levels: 0.6700, 0.6800, and 0.6900
Support Levels: 0.6674, 0.6600, and 0.6550
AUD/USD Retains Strong Control
As mentioned earlier, headwinds in the AUD/USD market have kept price movements on a bearish path. However, a careful examination of price movements reveals that the market has been experiencing a bit more difficulty progressing downward.
Nevertheless, the Moving Average Convergence Divergence (MACD) indicator suggests that downward forces still appear fairly strong. This comes from the fact that the mentioned indicator lines are still trending downward while their bars are appearing solid red. This tentatively signals that downward forces are still formidable enough to cause more price declines in this market.
AUD/USD Will Likely Push Prices Further Lower
Price activity in the AUD/USD remains below the middle limit of the Bollinger Bands. Furthermore, the last price candle here is bearish and seems to be significantly large. Meanwhile, the MACD indicators have been pointing out that upside forces have been trying to pick up some momentum. Nevertheless, the last bar on this indicator has revealed that the hopes of recuperation may have been cut short, as the bar is now pale red.
This signals that the foretold upside momentum is now dying off. With price action now below the middle limit of the Bollinger Bands, we can anticipate further price declines. However, fundamentals from either side of the market will be key in determining if prices may head towards the 0.6650 mark or not.
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