AUDUSD declined today morning during the Asian session with a bearish opening gap. AUDUSD dropped below 0.7580 psychological support level. What is next? 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.
December 21, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7570 area and trying to push downside.
After bouncing from the dynamic level of 20 EMA on the intraday chart, the bulls pushed the price upside quite impulsively, but failed to break above 0.7620 to 0.7640 resistance area. As per the current price action, AUDUSD may retrace downward towards the Kijun line and the Tenkan line in the days ahead.
Moreover, Australians stuffed into shopping centers last week to load up on supplies for the Christmas holiday season, passing money that may generally go toward abroad travel and cheering a yearly ceremony that was undermined by the new Covid-19. By travel and numerous social exercises diminished for the vast majority of the year by limitations on movement expected to slow the virus, consumers have gone to home cooking and amusement for their leisure and spent up.
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AUDUSD Dropped Below as the Bulls Faced Strong Resistance
AUDUSD is currently residing near 0.7570 area and trying to decline. However, the price also broke below the uptrend line support on the intraday chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD dropped below and currently trading around 0.7570 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.7590 to 0.7580 area, the bears may sustain the bearish pressure towards 0.7510 to 0.7500 support area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. It may push the price down as a strong resistance. Besides, the MACD lines are currently residing above the 0.00 level and gradually sloping down. Also, the Histogram has created a bearish divergence. Both indicate that bears may push the price down further in the days ahead.
AUDUSD Bulls Are Still Optimistic
According to the daily chart, AUDUSD dropped below, but the overall bias is still bullish. As per the current scenario, if the price can have an impulsive bearish daily candle close below 0.7590 to 0.7580 area, the bears may push the price downside towards 0.7510 to 0.7500 area. So, if the price retrace towards 0.7510 to 0.7500 area and bounced upside with a daily bullish candle close, the bulls may regain momentum and recover higher towards 0.7580 to 0.7590 area as a first target. The second target will be 0.7620 to 0.7640 area if the price breaks above 0.7580 to 0.7590 area in the days ahead.
Image: AUDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as a strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an extended period of bullish momentum, the price requires a downside retracement before continuing further. A daily close will help to identify the definite momentum in the coming days.