The AUDUSD pair has remained under attack from headwinds. The USD side of the market has been eventful, while the Australian dollar has relatively calm or less impactful fundamentals surrounding it. This made this market a favorite for bearish traders. What can be expected from this market in the new week?
Major Price Levels:
Resistance Levels: 0.6503, 0.6553, and 0.6600
Support Levels: 0.6500, 0.6450, and 0.6400
AUDUSD May Have Found Strong Support
Price action in the AUDUSD has kept falling through multiple support levels since July 14th, when the marker poked through the 0.6874 price mark as resistance. Since then, prices have started retracing lower price marks in search of support. Nevertheless, price movements in this market seem to have hit rock bottom during Thursday’s trading session.
Furthermore, the last price candle on this chart suggests that buyers may be staging a re-entry at this point. A green hammer-like price candle has just appeared on the daily chart for this pair. However, this price candle seems to have offered bullish traders only minimal profits. Also, the Stochastic Relative Strength Index (RSI) indicator lines can be seen delivering a crossover in the oversold region. Consequently, this hints that prices may rebound from this level.
The AUDUSD Market Seems Primed for Recording Early Gains
The AUDUSD 4-hour market seems to agree that traders in this market may record early gains. This can be observed as the last price candle on this chart has also arrived bullish. Additionally, this price candlestick is now testing the 9-day Simple Moving Average line (SMA). If eventually, the new week can offer enough push to bring the market above the 9-day SMA curve, this may strengthen buying confidence.
The RSI lines for this market are trending upwards and are now around the 50 mark. While the RSI seems too sensitive, we may want to deduce that price action seems to be gaining momentum. Consequently, this may offer some upside push to price movements towards the 0.6550 mark shortly.
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