AUDUSD fall today morning during the Asian session with a bearish opening gap. AUDUSD broke below 0.7750 psychological support level. Will AUDUSD decline further downside 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 22, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7730 area and trying to push higher. After rejecting 0.7850 to 0.7840 area, the bears regained momentum and pushed the price downward quite impulsively, and broke below 0.7750 to 0.7740 event level. As per the current price action context, the price may retrace towards the dynamic level of 20 EMA on the intraday chart in the coming days.
Moreover, inflation chances are rising in the U.S. after unprecedented financial and fiscal incentives, as indicated by analysts who are additionally developing progressively worried about a corresponding surge in government liability. On the other hand, the Australian economy is still under pressure because of rising cases of COVID-9.
AUDUSD Broke Below As the U.S. Dollar Index Regained Upside Momentum
AUDUSD is currently residing near 0.7730 area and trying to recover higher. However, the price also broke below the Kumo Cloud on the intraday chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD broke below and currently trading around 0.7730 area. As per the current price action, if the price strikes over 0.7740 to 0.7750 area with an impulsive bullish candle, the bulls may regain momentum and push the price upward towards 0.7840 to 0.7850 area in the coming days. Alternatively, if the price rejects 0.7750 to 0.7740 area with a bearish candle, the bears may sustain the bearish pressure towards 0.7620 to 0.7600 area in the process.
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 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.
AUDUSD May Decline Further Lower
According to the daily chart, AUDUSD broke below as the bears are optimistic. As per the current scenario, if the price can have an impulsive bearish candle close below the dynamic level of 20 EMA, the bears may continue the bearish pressure towards 0.7620 to 0.7600 area as a first target. The second target will be 0.7450 to 0.7400 area if the price can break below 0.7620 to 0.7600 area in the coming days.
Image: AUDUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing above the price, which may work as strong resistance in the process. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish crossover. Besides, the Stochastic Oscillator lines have created a bearish divergence. Both indicate that the bears may sustain the bearish pressure further in the days ahead.
To conclude, AUDUSD has become volatile, but the bears are still holding the momentum below 0.7820 to 0.7800 event level. A daily close will help to identify the definite momentum in the coming days.