AUDUSD has become impulsive and non-volatile after bouncing from 0.7350 support level. AUDUSD broke above 0.7400 psychological key level. What is next? AUDUSD to continue the bullish momentum? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
December 7, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7430 area and became quite volatile. After breaking above 0.7400 resistance level the bulls had an impulsive bullish candle close above it. As per the current price action, AUDUSD may retrace downside towards the dynamic level of 20 EMA in the coming days.
Moreover, Australia updated its conjecture for agricultural exports for the 2020/21 season as substantial downpours supported production, even as mounting trade pressures with China have harmed demand for a few commodities this year. In addition, agricultural exports will add up to A$49.24 billion ($36.59 billion) for the current season finishing toward the finish of June 2021, up 1% from its past inventory of A$48.8 billion in September, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said on Monday.
On the other hand, The U.S. is getting ready to authorize at least a dozen more Chinese authorities over their function in the ongoing disability of Hong Kong lawmakers, Reuters revealed. Furthermore, the most recent round of approvals over Hong Kong could come as ahead of schedule as Monday, Reuters stated, referring to three individuals including an American authority acquainted with the issue.
AUDUSD Broke Above as Investors Are Optimistic
AUDUSD is currently residing near 0.7430 area and trying to decline. The dynamic level of 20 EMA carried the price as support and help the price to broke above o.7400 resistance on the intraday chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD broke above and currently trying to retrace down. As per the current scenario, if the price retraces towards 0.7400 to 0.7380 support area and bounced upside, the bulls may regain momentum and recover higher towards 0.7480 to 0.7500 area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as a strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
AUDUSD May Sustain the Bullish Bias
According to the daily chart, AUDUSD broke above as investors are optimistic. As per the current price action, if the price bounces from 0.7400 to 0.7380 support area with an impulsive bullish candle, the bulls may sustain the bullish trend towards 0.7480 to 0.7500 area as a first target. The second will be 0.7540 to 0.7550 area if the price breaks above 0.7480 to 0.7500 area in the coming days.
Image: AUDUSD Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support. Also, the MACD lines are currently residing above the 0.00 level. It indicates that bulls are still holding the momentum of the market.
To conclude, after several attempts to breaking above 0.7400 area, the bulls have successfully broken above the key resistance last week. A daily close is required to identify the definite momentum in the coming days.