The AUDUSD market had previously experienced an impressive surge due to the recent weakness of the US dollar. However, headwinds have pushed the pair to relinquish all of its previously gained profits. Will the new week bring new opportunities?
Major Price Levels:
Resistance Levels: 0.6283, 0.6300, and 0.6400
Support Levels: 0.6250, 0.6200, and 0.6150
AUDUSD Retracement Appears Exhausted
It is true that headwinds have had a significant impact on the AUDUSD daily market. However, at this point, it seems that the downward retracement may be approaching its end. The lines of the Stochastic Relative Strength Index (RSI) indicator have fallen deeply into the oversold region, with the leading line nearing the 0.00 level of the indicator.
Additionally, a small green price candlestick can be observed at a considerable distance below the Moving Average (MA) curve. Given the persistent bearish trend, the appearance of a green price candle here indicates a weakening of downward pressure in this market.
AUDUSD Hopes for an Upside Correction Still Appears Limited
While technical indicators in the AUDUSD daily market suggest diminishing downward momentum, the 4-hour market also indicates that headwinds are weakening. However, more fundamental factors are required to provide the pair with a clear opportunity to combat downward forces.
The preceding session had tested the resistance at the 0.6300 level, but the last price candle on the chart demonstrated the strength of this resistance as it rebounded. Conversely, the RSI curves are seen rising against all odds further into the overbought zone. Consequently, this suggests that further weakening of the US dollar may likely push the pair toward the 0.6350 mark.
Do you want to take your trading to the next level? Join the best platform for that here.