AUDUSD rose today morning during the Asian session with a bullish gap. AUDUSD facing resistance around 0.7290 key level, but the bulls are still in the market. Will bears regain momentum? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
November 9, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7285 area and facing strong resistance around 0.7290. After bouncing from 0.7000 to 0.7010 support level, the bulls have regained momentum and strikes higher towards 0.7290 area quite impulsively. As per the current price action, the price may retrace downside toward the dynamic level in the coming days.
A triumph for Democrat Joe Biden in the U.S. presidential election will probably facilitate a few jitters in monetary markets current week even as President Donald Trump discard to accept and presses ahead with juridical battles against the result. However, with the power of the Senate still up in the air and the new resurrection in infection cases, market chances procrastinate, and the possibility of extra-economic stimulus before January is impossible.
On the other hand, Australia says it has intently checking trade streams to China into “profoundly disturbing” reports from the industry that Chinese purchasers have been advised not to buy seven classes of Australian items and commodities from Friday. Furthermore, Australian media have revealed that Chinese importers had been casually cautioned by Chinese customs authorities that Australian wine, copper mineral, barley, coal, sugar, wood, and lobster would be focused for expanded examinations from Nov. 6.
AUDUSD Facing Resistance as the Tension Rises on Australia – China’s Trade
AUDUSD is currently trading around 0.7285 area and trying to push upside. Moreover, the bulls rejected from 0.7290 resistance level several times, according to the intraday chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD facing resistance and currently trading around 0.7285 area. As per the current scenario, if the price can have an impulsive bearish close below 0.7290 to 0.7270 area, the bears may regain momentum and decline towards 0.7220 to 0.7200 area in the coming days. Alternatively, if the price breaks above 0.7290 to 0.7270 area with a 4-hour bullish close, the bulls may recover upward towards 0.7330 to 0.7340 area in the process.
In addition, the dynamic level of the EMA is currently residing below the price. It may pull the price downside as a mean reversion. Besides, the MACD lines are currently residing above the 0.00 level and may have a bearish cross over. It also indicates that bears may regain momentum in the days ahead.
AUDUSD May Recover Further
According to the daily chart, AUDUSD facing resistance and currently trading around 0.7285 area. As per the current price action, if the price can have a bearish close below 0.7290 to 0.7270 area, the price may retrace towards 0.7220 to 0.7200 area in the process. So, if the price retraces downside towards 0.7220 to 0.7200 support area and bounced upside, the bulls may sustain the bullish trend towards 0.7330 to 0.7340 area as a first target. The second target will be 0.7440 to 0.7450 area.
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 upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an impulsive bullish momentum, AUDUSD may retrace downside towards the dynamic level. A daily close is required to identify the definite momentum in the coming days.