AUDUSD Bulls Regained Momentum – Will the Bullish Trend Continue?


AUDUSD started trading today with a bearish gap but still holding the bullish momentum above 0.72 area. AUDUSD bulls regained momentum and broke above 0.72 resistance level with an impulsive bullish pressure last week. Will bulls continue the bullish trend?  What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis. 

October 12, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7220 area and trying to push downside. The price also broke above the dynamic level of 20 EMA impulsive on the daily chart. As per the current price action, the price may retrace towards the dynamic level on the intraday chart in the coming days.

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AUDUSD Bulls Regained Momentum as the U.S. Economy Battles to Recuperate From COVID-19

AUDUSD is currently trading around 0.7220 area and trying to decline. However, the price also broke above the Kijun line and the Tenkan line on the intraday chart.

AUDUSD Bulls Regained Momentum

Image: AUDUSD 4 Hour Chart

According to the 4-hour chart, AUDUSD bulls regained momentum and currently trading around 0.7220 area. As per the current price action, the price may retrace downside towards 0.7200 to 0.7190 support area in the process. So, if the price retraces down towards 0.7200 to 0.7190 area and bounces higher with an impulsive bullish 4-hour candle close, the bulls may recover higher towards 0.7265 to 0.7275 area as a first target. The second target will be 0.7330 to 0.7340 event-level if the price breaks above 0.7265 to 0.7275 resistance in the coming days.

In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as a strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days.

AUDUSD Bulls Are Optimistic

According to the daily chart, AUDUSD bulls regained momentum and broke above 0.7200 area. As per the current price action, if the price retraces downside towards 0.7200 to 0.7190 support area and bounces higher with an impulsive daily bullish candle close, the bulls may sustain the bullish trend towards 0.7265 to 0.7275 area as a first target. The second target will be September’s highest pick, which is around 0.7400 to 0.7420 area if the price takes over 0.7265 to 0.7275 resistance in the day ahead.

AUDUSD Bulls Regained Momentum

Image: AUDUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside. Also, the RSI line is currently residing below the overbought level 70 and gradually moving upward. It indicates that bulls may continue the bullish trend in the process.

To conclude, after bouncing from 0.70 psychological support, the bulls regained momentum and had a strong daily bullish candle close above 0.7200 area. Another daily close is required to identify that the bulls are going to continue the bullish pressure or not in the coming days. 

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