The AUDUSD price action stays bearish as a new week begins. A major contributing factor to this seems to be the newfound momentum of the USD. This seems to have revived the downward forces and is bringing price movements back to lower support.
Major Price Levels:
Resistance Levels: 0.6645, 0.6700, and 0.6750
Support Levels: 0.6600, 0.6550, and 0.6500
AUSDUSD Bears Stay Dominant
AUDUSD has been on the receiving end of the new momentum gain in the US dollar. Consequently, price action in this market has torn through the 0.6700 support and is likely to fall lower ahead of the US employment data, to be released later this week. Price action broke through the upside-sloping trendline three sessions ago and fell to lower support quickly, assisted by high volatility, considering the size of recently formed red price candles.
Also, the Moving Average Convergence Divergence (MACD) indicator curves keep falling below the equilibrium level. Nevertheless, price action has hit the lowest band of the Bollinger Bands indicator, and a green price candle has appeared. However, the size of this green price candle isn’t too encouraging for now, and price action may be considered to remain bearish.
AUDUSD Is Trying to End the Bear Market
Moving on, the AUDUSD 4-hour market has revealed that bulls may be trying to put an end to bearish profits. About ten trading sessions ago, price action seemed to be consolidating with significantly reduced volatility.
Also, the Bollinger Bands indicator’s upper and lower limits are now contracting. Meanwhile, a crossover has occurred on the MACD, and the lines of this indicator have maintained the crossover despite the reduced volatility. Indications from this market seem suspicious, but they are still weak. Therefore, bear traders can prepare to see a change in this market trend, as price movement may correct towards 0.6700 price mark.
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