AUDUSD bears have regained momentum and nose-dive below 0.7730 to 0.7720 significant level. AUDUSD broke below 0.7720 psychological support level. Will the price continue further downward 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.
May 31, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7725 area and trying to push lower. After breaking below 0.7730 to 0.7720 support level, the bears pushed the price downside and reached 0.7690 to 0.7680 area. However, the price has bounced from 0.7690 to 0.7680 area and retraced higher. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the coming days.
AUDUSD Broke Below as the U.S. Dollar Index Climbed Higher
AUDUSD is currently residing near 0.7725 area and trying to push downward. However, the price is still residing inside the ranges of 0.7800 to 0.7680 area.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD broke below and currently trading around 0.7725 area. As per the current scenario, if the price can have an impulsive bearish candle close below 0.7730 to 0.7720 area, the bears may regain momentum and push the price down towards 0.7690 to 0.7680 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Bollinger Bands middle band 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 price action context, if the price can have an impulsive daily bearish candle close below 0.7730 to 0.7720 area, the bears may continue the bearish pressure towards 0.7690 to 0.7680 area as a first target. The second target will be 0.7630 to 0.7620 area if the price can break below 0.7690 to 0.7680 area in the coming days. On the contrary, if the price climbed higher and had a daily bullish candle above 0.7720 to 0.7730 area, the bulls may regain momentum and recover upward towards 0.7790 to 0.7800 area in the days ahead.
Image: AUDUSD Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing above the price, which has already worked as strong resistance. Along with this, the Stochastic Oscillator lines are currently residing below the mid-level 50 and gradually sloping down. It indicates that the bears may sustain the bearish pressure further in the process.
To conclude, after breaking below the uptrend line, the price has successfully retraced higher towards the dynamic level on the intraday chart. An impulsive daily close will help to identify the definite momentum in the coming days.