AUDUSD has become impulsive and non-volatile after rejecting 0.7810 to 0.7800 resistance level. AUDUSD faced resistance around 0.7800 psychological key 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.
January 18, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7690 area and trying to push lower. After bouncing from 0.7640 to 0.7650 support level, the bulls pushed the price upward, but failed to break over 0.7800 to 0.7810 key level. As per the current price action, AUDUSD may face strong support around 0.7650 to 0.7640 area in the coming days.
Moreover, Joe Biden will be initiated as the 46th President of the United States on Wednesday, assuming control over the administration of a nation attacked by the pandemic and confronting profound socio-economic divisions. In addition, Biden has declared a stimulus package of $1.9 trillion, which incorporates $1,400 stimulus checks. However, this may demonstrate a twofold edged blade for speculators, supporting optimism over the standpoint for the financial recuperation while raising concerns over how the U.S. will manage the cost of it.
On the other hand, at the close of the last week, Australia’s stocks were higher, as gains in the IT, Mining, Metals and Materials areas drove shares higher. However, the S&P/ASX 200 acquired 0.00%, at the end in Sydney. On the contrary, the S&P/ASX 200 were Afterpay Touch Group Ltd (ASX:APT) is the best performer of the session, which has climbed by 10.04% or 12.15 points to exchange at 133.15 at the end.
AUDUSD Faced Resistance as the U.S. Dollar Index Bulls Regained Momentum
AUDUSD is currently residing near 0.7690 area and trying to decline further. However, the currency pair has gained almost 800 pips after bouncing from 0.7000 to 0.7010 support level.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD faced resistance and currently trading around 0.7690 area. As per the current price action, if the price pushes further downside towards 0.7650 to 0.7640 support area and bounced upside with an impulsive bullish candle close, the bulls may regain momentum and recover higher towards 0.7800 to 0.7810 key area in the coming days. Alternatively, if the price breaks below 0.7650 to 0.7640 area with an impulsive bearish candle, the bears may sustain the bearish pressure towards 0.7520 to 0.7500 area in the process.
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 may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan may work as a confluence of the dynamic level in the coming days. However, the price also broke below the Kumo Cloud and had a 4-hour bearish candle close.
AUDUSD Bulls Are Still Optimistic
According to the daily chart, AUDUSD faced resistance, but the bulls are still optimistic. As per the current price action, if the price pushes further down towards 0.7650 to 0.7640 support area and bounced upward with an impulsive daily bullish candle, the bulls may sustain the bullish trend towards 0.7800 to 0.7810 area as a first target. The second target will be 0.7880 to 0.7900 area if the price can break above 0.7800 to 0.7810 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 carry the price upward as strong support in the process. Also, the MACD lines are currently residing above the 0.00 level and had a bearish crossover. It indicates that the bears may sustain the bearish pressure further in the day ahead.
To conclude, after an extended period of bullish momentum, the price requires a downside retracement before continuing the bullish bias. A daily close is required to identify the definite momentum in the coming days.