The AUDUSD pair experienced marginal losses towards the end of last week’s trading, with Friday’s recorded losses appearing more substantial than those of Thursday. Despite this, trading activities remain above Wednesday’s closing levels. The overall bias of the pair indicates the potential for an extension of the upside correction. However, this outlook is contingent on fundamental developments on the USD side of the market.
Key Price Levels:
Resistance Levels: 0.6546, 0.6700, and 0.6800
Support Levels: 0.6500, 0.6450, and 0.6400
AUDUSD Traders Targeting the $0.6600 Mark
The AUDUSD market witnessed significant upward movement after breaking the resistance at the 0.6489 mark. Towards the end of last week’s trading, the momentum in the market appeared to cool down, resulting in minimal losses. Despite this, trading activities maintain a substantial distance above the middle band of the Bollinger Bands indicator.
The observed cooling momentum is reflected in the pale green appearance of the bars of the Moving Average Convergence Divergence (MACD) indicator lines. Although the MACD line remains above the equilibrium level, the upside vigor appears subdued. This implies that further profits in the pair may hinge significantly on the underlying fundamentals.
Optimistic Signs in the AUDUSD Market
In the AUDUSD 4-hour market, the Bollinger Bands have noticeably narrowed, and a green bar has emerged just above the lower limit of the Bollinger Bands. The observed price increase seems to have occurred towards the close of Friday’s trading session.
Correspondingly, a pale red bar has materialized below the equilibrium level of the MACD indicator. This suggests potential momentum for upside forces in the market. However, it’s imperative for traders to monitor influencing fundamentals from the US dollar side of the market. Nonetheless, ahead of such developments, there’s a possibility that the market may approach the 0.6580 mark.
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