AUDUSD has become volatile and corrective, but bulls are still optimistic. AUDUSD bulls are holding the bias above 0.70 psychological area. Will bulls strike upward 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.
November 2, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7010 area and trying to push downside. After rejecting 0.7160 to 0.7150 resistance level, the bears regained momentum and pushed the price down quite aggressively but failed to break below 0.7010 to 0.7000 support zone. As per the current price action, the bears may face strong support around 0.7010 to 0.7000 area in the coming days.
The headliner will be U.S. Election Day on Tuesday. It is set to be one of the main important presidential elections in the entire existence of the nation. The election campaign has been especially replete due to Covid-19 and the attention on the quick result in the midst of fears that a period with no reasonable picture on the result could bother markets.
On the other hand, the RBA interest rate decision is going to publish tomorrow, which has predicted 0.1%. It is a great deduction from the previous rate of 0.25%. If the RBA cuts the interest rate to 0.1%, it may weaken AUD in the coming days.
AUDUSD Bulls Holding as the RBA Interest Decision Going to Publish Tomorrow
AUDUSD is currently residing near 0.7010 area and trying to push lower. Moreover, the price is still residing below the dynamic level of 20 EMA on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD bulls are holding and currently trading around 0.7010 area. As per the current price action, if the price bounces from 0.7010 to 0.7000 support area with an impulsive bullish candle close, the bulls may regain momentum and recover higher towards 0.7150 to 0.7160 area in the days ahead. Alternatively, if the price breaks below 0.7010 to 0.7000 support area with an impulsive bearish candle close, the bears may sustain the bearish pressure towards 0.6860 to 0.6850 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. In contrast, the bulls may regain momentum if the price can break above the dynamic level. Besides, the MACD lines are currently residing below the 0.00 level and may have a bullish intersection. Also, the histogram is currently residing below the 0.00 level and gradually moving upward. It indicates bulls are trying to regain momentum.
AUDUSD Bears May Decline Further
According to the daily chart, AUDUSD bulls are holding as the interest decision knocking on the door. So, if the price can break below 0.7010 to 0.7000 support area with an impulsive daily bearish candle close, the bears may continue the bearish pressure further towards 0.6860 to 0.6850 area as a first target. The second target will be 0.6700 to 0.6680 area if the price can break below 0.6860 to 0.6850 area in the coming days.
Image: AUDUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. 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.
To conclude, as long as the price sustains above 0.7010 to 0.7000 psychological support area, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.