AUDUSD bears have regained momentum after rejecting 0.8010 to 0.7980 key resistance area. AUDUSD bounced upward from 0.7700 psychological support level. Will bulls recover further higher 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 1, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7770 area and trying to push the price upside. After bouncing from 0.7580 to 0.7600 support level, the bulls pushed the price higher quite impulsively, but failed to break over 0.7980 to 0.8010 key area and declined. As per the current price action, the price may face strong resistance at the dynamic level on the intraday chart in the coming days.
Moreover, Australian job commercials climbed to a close, to 2-1/2 year top-last month, giving another sign huge fiscal and financial upgrade were attempting to prop up the state’s economy following a Covid-19 pandemic actuated downturn. On the other hand, The short-term U.S. repurchase contract (repo) rate and the secured overnight financing rate (SOFR) recuperated from about nine-month lows last week. However, ought to stay under tension this year as the market digests excess money in the system.
AUDUSD Bounced Upward as the Price Requires an Upside Retracement
AUDUSD is currently residing near 0.7770 area and trying to recover higher. However, the price also broke below the dynamic level on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD bounced upward and currently trading around 0.7770 area. As per the current price action, if the price recovers further upside and breaks over 0.7800 to 0.7820 area with an impulsive bullish candle, the bulls may sustain the bullish pressure towards 0.7980 to 0.8010 area in the coming days. Alternatively, if the price pushes higher and rejects 0.7800 to 0.7820 area with a bearish candle, the bears may regain momentum and decline towards 0.7700 to 0.7680 area again in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. However, the bulls may regain momentum if the price can break over the dynamic level in the process. Also, the Stochastic Oscillator lines are currently residing above the oversold level 20 after having a bullish crossover. It indicates that the bulls may sustain the bullish pressure further in the coming days.
AUDUSD May Continue the Bullish Trend
According to the daily chart, AUDUSD bounced upward as the bulls are still optimistic. As per the current scenario, if the price can have an impulsive daily bullish candle close above 0.7800 to 0.7820 area, the bulls may continue the bullish trend towards 0.7980 to 0.8010 area as a first target. The second target will be 0.8100 to 0.8130 key level if the price can break over 0.7980 to 0.8010 area in the coming days.
Image: AUDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing over the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may work as strong support to push the price upside if the price can break above it. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing over the uptrend line, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.