AUDUSD bears have regained momentum after rejecting 0.7820 to 0.7800 resistance level. AUDUSD dropped below 0.7650 psychological event area. Is it the end of 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.
March 29, 2021, | AtoZ Market – AUDUSD is currently trading around 0.7620 area and trying to push lower. After bouncing from the uptrend line, the bulls pushed the price upward quite impulsively, but failed to sustain the bullish trend over 0.7960 to 0.8000 key area and pushed lower. As per the current price action, the price may face strong resistance around 0.7650 to 0.7620 area in the coming days.
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AUDUSD Dropped Below as the Key Resistance Level Worked Strongly
AUDUSD is currently residing near 0.7620 area and trying to decline further. However, the price also broke below the dynamic level of 20 EMA on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD dropped below and currently trading around 0.7620 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.7650 to 0.7620 area, the bears may push the price downside towards 0.7520 to 0.7500 area in the process. Alternatively, if the price bounced upside from 0.7620 to 0.7650 area and had an impulsive bullish candle close, the price may recover higher towards 0.7800 to 0.7820 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing near the price. So, it may work as strong resistance if the price can have an impulsive 4-hour bearish candle close below it. Moreover, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish crossover. It indicates that bears may sustain the bearish pressure further in the days ahead.
AUDUSD May Decline Further Lower
According to the daily chart, AUDUSD dropped below as the bears are optimistic. As per the current scenario, if the price can have an impulsive bearish candle close below 0.7650 to 0.7620 area, the bears may push the price downward towards 0.7520 to 0.7500 area as a first target. The second target will be 0.7400 to 0.7350 area if the price can break below 0.7520 to 0.7500 area in the coming days.
Image: AUDUSD Daily Chart
Along with this, 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 downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. Moreover, the price also broke below the Kumo Cloud, which is another indication of bearish continuation.
To conclude, after an extended period of bullish pressure, the bears have regained momentum and broke below the uptrend line. An impulsive daily close is required to identify the definite momentum in the coming days.