The AUDUSD pair has regained momentum after bouncing from 0.55 area. Despite the recent impulsive Bearish pressure, the bulls are currently trying to push the price higher. Let's check AUDUSD Technical Analysis for more levels and insights.
March 19, 2020 | AtoZ Markets - AUDUSD is currently trading above $0.58 after the price bounced from $0.55 critical support. AUDUSD recent Bearish trend was quite impulsive and non-volatile, which lead the price down to 2002's low but recently Bulls regained momentum consistently.
The Australian Dollar declined more than 3% against the U.S. Dollar today during the Asian session. This massive drop took place after the Reserve Bank of Australia (RBA) cut interest rate to 0.25%, which is record low. RBA Governor Philip Lowe said, "The Board is not going to increase the cash rate target until there is progress towards full employment, and it is confident that inflation will be sustainable within 2–3% target band."
He also added, "At some point, the virus will contain, and the Australian economy will recover. In the interim, a priority for the Reserve Bank is to support jobs, incomes, and businesses, so that when the health crisis recedes, the country will recover strongly." On the other hand, the Australian employment change report came today 26.7k, which is better than forecast and the Unemployment rate is 5.1%.
Moreover, the U.S. Dollar gained momentum as the investors are looking for safe-haven markets in the period of financial crisis. U.S. Dollar Index rose to 101.930 up by 0.4% after the US government took positive measures for Coronavirus lockdown situation.
AUDUSD Bulls Regained Momentum and May Recover Higher
AUDUSD has been impulsive and non-volatile with the recent Bearish trend after rejecting from 0.6670 area. Currently, the price bounced from 0.5500 support level and recovering higher.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, the price is currently residing above 0.58 area after an extended period of Bearish pressure. AUDUSD Bulls are taking over the market may push higher towards 0.60 area without any further decline.
Moreover, the dynamic level of 20 EMA is residing above the current price, which may pull the price higher towards the Mean, and may also act as resistance for further downward pressure. Additionally, the MACD line is residing below 0.00 level in the verge of forming a Bullish cross over along with rising Stochastic lines in confluence.
AUDUSD Bearish Trend May Continue After Retracing Higher
According to the Daily chart, AUDUSD Bulls regained momentum after a massive drop took place towards $0.55 area. The price found support at $0.5500 area and pushed higher. As per the current price action, the Bulls may recover higher towards 0.60 before continuing the Bearish trend towards 0.55 again. Until the 0.60 level broken above, Bullish counter will not be confirmed, and current price action will only be part of the Bearish trend as a short-term retracement.
Image: AUDUSD Daily Chart
On the other hand, the dynamic level of 20 EMA is far away from the current price, which may pull the price higher towards Mean Reversion whereas Stochastic Oscillator lines are below 20 level with a Bullish crossover. As per indicators and current market sentiment, Bulls may sustain momentum in the coming days.
To conclude, the AUDUSD Bulls have regained momentum and the price may now recover higher towards 0.60 area. Though the bias is still Bearish, Bulls need to close above 0.60 to confirm further Bullish pressure in the process.