AUDUSD failed to capitalize in the previous week when the Federal Reserve maintained a dovish stance towards interest rates. This occurred while some other pairs have printed significant profits. As this fundamental fades, the market stands a chance of falling towards lower support ahead of the US CPI.
Key Price Levels:
Resistance Levels: 0.65100, 0.6600, and 0.6700
Support Levels: 0.6507, 0.6400, and 0.6300
AUDUSD Eyes Support at 0.6490
Price action in the AUDUSD daily market faced a strong rejection towards the end of the previous week. This occurred when the market rebounded off the support at the 0.6590 mark. The rejection was vivid as price action tried to cross the green set of the Guppy Multiple Moving Average (GMMA) lines.
The closing session for the week went bearish considering the appearance of the last price candle and has returned to being priced back below the green GMMA lines. Despite this, the Stochastic Relative Strength Index (SRSI) lines have continued to rise upward. With fundamentals aside, this suggests that prices may continue upward at this point.
AUDUSD Seems to Have a Clear Bearish Path
In the 4-hour time frame of the AUDUSD market, it could be seen that price action has started forming below the crossed lines of the GMMA indicator lines. The closing session for the previous week had formed at a clear distance from the crossed GMMA lines. Likewise, the SRSI indicator lines have been falling quite steeply into the oversold region.
Considering ensuing indications from technical indicators, traders might want to stick to bearish forex signals in this market, as the market seems to be heading towards the 0.6585 mark.
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