AUDUSD has been quite non-volatile and impulsive with the recent bearish trend. After breaking 0.6750 area, AUDUSD reached at 0.5500 aggressively. Can AUDUSD bulls Remain Active Above 0.6030 area? What the charts and technical indicators are saying? Read more to find further insights into today’s AUDUSD Technical Analysis.
April 2, 2020 | AtoZ Markets - Australian Dollar regained momentum as U.S. economy is currently struggling with COVID-19 situation. Despite the fact that Australia is no different, certain weakness ahead of NFP tomorrow does indicate the employment condition and economic condition of the U.S. is not stable.
Moreover, U.S. Treasury Secretary Steven Mnuchin said in an interview with CNBC, "The U.S. President Donald Trump was interested in using the road, bridge, and other projects to blunt the economic effects of the coronavirus crisis and the administration was having talks about creating an infrastructure plan."
He also added, "The president has been very clear: he is prepared to do whatever we need to do to make sure that American workers and American businesses are protected. If we need more programs, more money, we will be going back to Congress."
On the other hand, "Australia Prime Minister Scott Morrison said, "The country's childcare sector will get A$1.6 billion ($973 million) over the next three months from taxpayer subsidies in a package that would make childcare in the country free. We will be putting in place support arrangements to the childcare facilities, some 13,000 of them, to ensure they will be able to remain open and will be there for parents to ensure they can do what they need to do each day."
AUDUSD Bulls Remain Active but Struggle Continues
AUDUSD is currently residing around 0.6090 area while struggling to break above the dynamic levels. After retracing 50 percent of the recent Bearish trend, AUDUSD became volatile, while Bulls are still present in the market.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD is currently trading around 0.6090 area and trying to push higher. After the price bounced from 0.5500 area, it did recover higher quite impulsively. As per current price action, the price needs to break above the dynamic level with an impulsive close to continue with the bullish pressure in place.
Furthermore, the dynamics level of 20 EMA is residing near the current price, along with the Kijun line and Tenkan line. In this scenario, the dynamic levels may work as strong support, if the price breaks above it. Besides, the Stochastic Oscillator lines are residing above-oversold level and recently had a bullish cross over. Though it indicates bullish momentum in the making but will only confirm it after the Stochastic lines break above 50 level which is at descending trendline resistance.
Can Bears Continue the Preceding Trend?
According to the Daily chart, AUDUSD bounced from a very important key level around 0.5500 area and had a weekly close above 0.6030. AUDUSD Bulls seems to be still active above 0.6030 area as the Bears are struggling to push the price lower. As per current price action, if the price pushes higher and has a bullish daily close above 0.6300 area, the Bulls may recover further towards 0.6750 in the days ahead. As the long-term trend is still Bearish, a break below 0.6030 may indicate further Bearish pressure towards 0.5500 again.
Image: AUDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is residing above the current price, which currently holding the price lower as resistance. In this case, a bullish breakout is required to add some confluence to the overall bullish trend in place. Moreover, the RSI line broke above the descending trend line in daily chart and currently indicating further up move is in the making.
To conclude, AUDUSD has been impulsive and non-volatile over the past few months. Despite the recent Bearish trend, Bulls may recover higher towards 0.6750 area in the days ahead. Though the overall bias is still Bearish, a break below 0.6030 can invite Bears for further decline.