AUDUSD has become volatile and corrective, but still holding the price below 0.7650 area. AUDUSD is facing resistance around 0.7620 event area. Can Bears push the price down in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
April 5, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7600 area and trying to push lower. After bouncing from 0.7530 to 0.7540 support level, the bulls have regained momentum and pushed the price higher quite impulsively, but failed to sustain the bullish pressure over 0.7620 to 0.7650 area. As per the current price action, the price may face strong resistance at the dynamic level on the intraday chart in the days ahead.
Along with this, Energy Secretary, Jennifer Granholm said on Sunday, the U.S. President Joe Biden would push through his $2 trillion infrastructure blueprint without the support of Republican administrators in the event that he can’t arrive at a bipartisan arrangement. On the other hand, Australia’s national bank will probably keep key rates at a record low of 0.1% in its month to month strategy meeting one week from now, a dominant part of financial analysts surveyed by Reuters showed, with rates seen at that level by the end of 2022.
AUDUSD Facing Resistance as the Event Level Working Strongly
AUDUSD is currently residing near 0.7600 area and trying to decline. However, the price is still residing below the Kumo Cloud on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD is facing resistance and currently trading around 0.7600 area. As per the current price action, if the price can have an impulsive bearish candle close below the dynamic level, the bears may push the price downside towards 0.7540 to 0.7530 area again in the coming days.
Moreover, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance if the price can have an impulsive 4-hour candle close below it. Besides, the MACD lines are still residing below the 0.00 level and may have a bearish crossover. It indicates that the bears may sustain the bearish pressure further in the process.
AUDUSD May Decline Further Lower
According to the daily chart, AUDUSD is facing resistance as the overall bias is still bearish. As per the current price action context, if the price can have an impulsive daily bearish candle close below 0.7650 to 0.7620 event level, the bears may continue the bearish pressure towards 0.7540 to 0.7530 area as a first target. The second target will be 0.7420 to 0.7400 area if the price can break below 0.7540 to 0.7530 area in the coming days.
Image: AUDUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Kijun line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing below the Kumo Cloud, the bias will remain bearish. An impulsive daily close is needed to identify the definite momentum in the coming days.