AUDUSD bears have regained momentum today morning during the Asian session. AUDUSD dropped below 0.7730 psychological support level. Bears to sustain the bearish pressure further in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
January 11, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7700 area and trying to push downside. After breaking over 0.7730 to 0.7740 resistance area, the bulls pushed the price upward quite impulsively, but failed to break above 0.7800 to 0.7820 area. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the daily chart in the days ahead.
Moreover, United States President-elect Joe Biden said people of American need further financial abatement from the Covid-19 pandemic currently and that he will convey an arrangement costing “trillions” of dollars one week from now. Joe Biden, presenting a few individuals from his monetary group, talked on Friday after data indicated the U.S. economy lost jobs without precedent for a very long time in December as a resurgent COVID-19 pandemic shut down restaurants and other organizations.
On the other hand, Australia’s wellbeing authorities said on Saturday that they are on high alarm after cases of profoundly contagious new variations of the Covid-19, found in Britain and South Africa, have made it into the nation.
AUDUSD Dropped Below as New Coronavirus Surged Again in Australia
AUDUSD is currently residing near 0.7700 area and trying to decline further. However, the price also broke below the Kijun line and the Tenkan line on the intraday chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD dropped below and currently trading around 0.7700 area. As per the current price action, if the price can have a bearish candle close below 0.7700 area, the bears may sustain the bearish pressure towards 0.7650 to 0.76400 support level in the process. So, if the price reaches 0.7650 to 0.76400 support area and bounced upside with an impulsive bullish candle close, the bulls may recover higher towards 0.7730 to 0.7740 area as a first target. The second target will be 0.7800 to 0.7820 area if the price breaks above 0.7730 to 0.7740 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price further downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days.
AUDUSD May Continue the Bullish Trend
According to the daily chart, AUDUSD dropped below as the price requires a downside retracement. As per the current scenario, if the price retraces downside towards 0.7650 to 0.7640 support level and bounced upside with an impulsive bullish candle, the bulls may recover higher towards 0.7800 to 0.78200 area as a first target. The second target will be 0.7890 to 0.7900 area in the process.
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. Besides, the MACD lines are still residing over the 0.00 level. It indicates that bulls are still residing in the market may strike higher in the days ahead.
To conclude, after an extended period of bullish momentum, the price requires downward retracement. A daily close is required to identify the definite momentum in the coming days.