AUDUSD has become impulsive and non-volatile after rejecting 0.7820 to 0.7800 resistance level. AUDUSD bears regained momentum as the NFP report came better than expected. Will bears push the price further lower in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
March 8, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7710 area and trying to retrace upward. After rejecting February 2018’s key resistance area, which is around 0.7980 to 0.8000 level, the bears pushed the price down quite impulsively and broke below 0.7820 to 0.7800 psychological support level. As per the current price action, the price may retrace towards the dynamic level on the intraday chart in the days ahead.
Moreover, after the Senate has passed President Joe Biden’s $1.9 trillion stimulus package on 6 March, it will transfer to a vote in the House tomorrow, 8 March 2021. After its section by the House, it will be sent Joe Biden, who is looking-forward to sign the bill before improved jobless advantages expire on March 14. On the other hand, the Australian economy is trying to recover slowly as the Coronavirus pandemic has shattered all the businesses.
AUDUSD Bears Regained Momentum as the Dollar Index Climbed Higher
AUDUSD is currently residing near 0.7710 area and trying to recover higher. However, the price has bounced upside from the Kumo Cloud on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD bears regained momentum and currently trading around 0.7710 area. As per the current scenario, if the price climbs further higher and had an impulsive bullish candle close over 0.7710 to 0.7720 area, the price may recover higher towards 0.7800 to 0.7820 area in the coming days. Alternatively, if the price rejects 0.7720 to 0.7710 area with an impulsive bearish candle, the bears may sustain the bearish pressure towards 0.7600 to 0.7580 support level in the process.
In addition, the dynamic level of 20 EMA is currently residing over the price. So, it may work as strong resistance to push the price downside. Moreover, the MACD lines are currently residing below the 0.00 level and may have a bullish crossover. Besides, the histogram has created a bullish divergence. Both indicate that the price may recover further upward in the days ahead.
AUDUSD Bulls Are Still Optimistic
According to the daily chart, AUDUSD bears regained momentum, but the overall bias is still bullish. As per the current price action, if the price declined towards 0.7600 to 0.7580 support level and bounced higher with an impulsive daily bullish candle, the bulls may continue the bullish trend towards 0.7800 to 0.7820 area as a first target. The second target will be 0.7980 to 0.8000 key area if the price can break above 0.7800 to 0.7820 area in the coming days.
Image: AUDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. So, the bulls may regain momentum if the price can break above the dynamic level in the days ahead.
To conclude, as long as the price residing over the Kumo Cloud, the overall bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.