January ends with AUDUSD holding below 0.8000. AUDUSD breaks 0.78 level after 0.80 ceiling holds with the pair remaining just above Fibonacci Expansion 141.4% at 0.7657 after candles continued plunging after breaking below 200 EMA. The nearest support as observed for the month holds at the upward sloping trend line which may be tested by the end of the month and should candles break below the trend line, the next level of support lies at Fibonacci Expansion 161.8% at 0.7163.
Based on W1 chart, candles have broken below Fibonacci Expansion 161.8% at 0.7943 with candles continuing on the bearish run towards 200.0% at 0.7575. With the release of several data from Australia and Friday’s Non-Farm Employment change in the U.S, volatility is expected to be high for this week which we may also see a reversal in direction.
Paying attention to D1 chart, moving averages continue to be downward sloping. Currently, there are no indications of reversal on the pair after candles failed to hold above 0.8000. Volatility is expected to be low for today with no major data releases and we can expect minimal movements until tomorrow.
Focusing on H4 chart, candles have rebounded away from the support at 0.7722. Stochastic oscillator starts to hook above and away from the oversold region and a temporary retracement from the bearish run is expected. However, candles are nearing the resistance at 0.7788 and should they fail to break above, candles are expected to continue falling for the rest of the day.
|Bearish if candles hold below 0.7788||0.7575||0.7657||0.7722||0.7788||0.7881|