The AUDUSD pair refuses to break significantly out of trading within the price range of 0.6489 and 0.6380. This pair has even started the week by printing losses for bullish traders, while bearish ones stand a chance of gathering more gains should USD fundamentals continue to get stronger.
Major Price Levels:
Resistance Levels: 0.6456, 0.6550, and 0.6650
Support Levels: 0.6402, 0.6350, and 0.6300
AUDUSD Posts Early Losses
AUDUSD had shown some promise towards the close of last week’s trading activities. This can be seen as price action rose past the middle limit of the Bollinger Bands. It was thought that the pair would record early gains due to the favorable stand mentioned.
However, the opposite happened, as a medium downward correction occurred, plunging prices back below the Moving Average (MA) line of the Bollinger Band. Consequently, this has offered a bearish tone to this market. At the same time, the Relative Strength Index (RSI) indicator has delivered a bullish crossover. This signals that price action may visit lower price levels as trading activities continue.
AUDUSD Trickles Towards Lower Levels
For the second consecutive trading session in the AUDUSD 4-hour market, price action has continued to fall lower. At this point, the ongoing session has started pushing the lowest band of the Bollinger Bands.
This could have offered some upside correction, but it can be seen that the RSI stays consistent with its bearish crossover. Also, it should be noted that the bearish crossover in the shorter time frame of 4 hours is occurring below the 40 mark of the indicator. Therefore, it appears that price action may crash through the 0.6380 mark to reach near the 0.6300 price level.
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