AUDUSD has become volatile but still trying to holding the bullish bias above 0.7590 to 0.7600 area. AUDUSD climbed over 0.7600 psychological event level. Will bears regain momentum in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
December 28, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7610 area and trying to recover upward. After bouncing from 0.7450 to 0.7460 support area, the bulls regained momentum and strike upside towards 0.7590 to 0.7600 area quite impulsively. As per the current price action context, the price may face strong resistance around 0.7630 to 0.7640 area again in the coming days.
In addition, New South Wales state of Australia has expanded COVID-19 testing to get control over a resurgence of the Covid-19 virus in Sydney, with different states and territories making comparative strides on concerns the prevalence may have spread. Authorities said a record of almost 70,000 tests was led on Thursday across New South Wales (NSW), home to about a fourth of Australia’s 25-million population.
On the other hand, U.S. President Donald Trump on Sunday endorsed into law a $2.3 trillion pandemic support and spending package, reestablishing joblessness advantages to a huge number of Americans and turning away a federal government closure in an emergency of his own making.
AUDUSD Climbed Over as Bulls Are Still Optimistic
AUDUSD is currently residing near 0.7610 area and trying to push upside. However, the price is still residing above the dynamic level of 20 EMA on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD climbed over and currently trading around 0.7610 area. As per the current price action, if the price pushed further upside towards 0.7630 to 0.7640 area and rejects with an impulsive 4-hour bearish candle, the bears may regain momentum and decline towards 0.7600 to 0.7590 area as a first target. The second target will be 0.7510 to 0.7500 area if the price can break below 0.7600 to 0.7590 area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as a strong support to push the price higher. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. So, the bears may regain momentum if the price can break below the dynamic level and the Bollinger Bands middle band in the coming days.
AUDUSD May Sustain the Bullish Trend
According to the daily chart, AUDUSD climbed over as bulls are still optimistic. As per the current scenario, if the price pushes further upside and breaks above 0.7630 to 0.7640 resistance level, the bulls may recover higher towards 0.7740 to 0.7750 area in the process. Alternatively, if the price rejects 0.7640 to 0.7630 area with an impulsive bearish candle close, the bears may regain momentum and push the price downside towards 0.7510 to 0.7500 area in the days ahead.
Image: AUDUSD Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down as a mean reversion. Also, the MACD lines are currently residing above the 0.00 level and had a bearish cross over. It indicates that the bears may regain momentum in the process.
To conclude, as long as the price residing over the dynamic level of 20 EMA, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days.