The AUDUSD pair has started the week with only minimal gains. This seems to have been initiated by the improved risk mood in the market, which has a limiting effect on the US dollar. Let’s take a closer look at this market for better insights.
Key Price Levels:
Resistance Levels: 0.6576, 0.6600, and 0.6700
Support Levels: 0.6500, 0.6400, and 0.6300
AUDUSD Bulls Are Being Limited
The AUDUSD daily market has started the week, extending the previous week’s rebound off support near the 0.6540 mark. However, upside moves are being limited by headwinds coming from the improved risk mood. With a calmer side of the Australian dollar, this is posing some upside resistance to price movement in this market. In the ongoing session, the price of the pair is above two Guppy Multiple Moving Average (GMMA) curves.
Nevertheless, it should be noted that prices in the ongoing session have seen significant contractions. This is pointed out by the clearance of the long upper shadow on the last price candle on the price chart. Also, the Moving Average Convergence Divergence (MACD) indicator lines have kept on rising out of the oversold region. This foretells that bullish momentum may grow in the market.
AUDUSD Shapes to Test the Support Level at the 0.6550 Mark
The AUDUSD 4-hour market has revealed that price movement has a slight upward path since its price action bounced off the support level near the 0.6540 mark. It should be observed that since then, the price movement has been hugging the green GMMA curves. Meanwhile, the ongoing session has brought the pair below the green set of the above-mentioned indicator line.
This seems to predict a bearish path for price movements. In response to such a minimal price decline, the curves of the Stochastic Relative Strength Index (RSI) indicator line now have a slight downward path in the overbought region. Nevertheless, the closeness of the indicator curves points to the possibility of a bearish reversal. Considering the available indications, traders speculating an upside correction towards the 0.6650 mark should position at a convenient mark below the 0.6550 mark.
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