AUDUSD has become volatile and corrective after rejecting 0.7325 to 0.7340 area. AUDUSD facing resistance around 0.7325 to 0.7340 psychological level and had several weekly candles close. Bears to 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 23, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7310 area and trying to decline. The price is still residing above the dynamic level of 20 EMA on the intraday chart. As per the current price action, the price may retrace downside towards the dynamic level of 20 EMA on the daily chart in the coming days.
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AUDUSD Facing Resistance as the COVID-19 Cases Raised Around the Globe
AUDUSD is currently residing near 0.7310 area and trying to push downward. However, after bouncing from 0.7000 to 0.7020 support area, the bulls pushed the price upside quite aggressively but failed to break above 0.7325 to 0.7340 resistance level.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD facing resistance and currently trading around 0.7310 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.7340 to 0.7325 area, the bears may push the price down towards 0.7220 to 0.7200 area in the process. Alternatively, if the pushed upside and breaks above 0.7325 to 0.7340 resistance level, the bulls may recover higher towards 0.7400 to 0.7410 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside. In contrary, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Besides, the MACD lines are currently residing above the 0.00 level and gradually sloping downside. It indicates that bulls are losing momentum slowly.
AUDUSD Bulls Are Still Optimistic
According to the daily chart, AUDUSD facing resistance, but the bias is still bullish. As per the current scenario, if the price had a daily bearish candle close below 0.7340 to 0.7325 area, the price may retrace downside towards 0.7220 to 0.7200 support level. So, if the price retraced towards 0.7220 to 0.7200 area and bounced higher, the bulls may regain momentum and recover upside towards 0.7325 to 0.7340 area again in the process. In addition to this, if the price can break above 0.7325 to 0.7340 area with an impulsive bullish candle, the bulls may sustain the bullish trend towards 0.7400 to 0.7410 area as a first target. The second target will be 0.7480 to 0.7500 key area.
Image: AUDUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as a strong support to push the price upward. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the days ahead.
To conclude, as long as the price sustains above 0.7200 to 0.7220 support area, the bias will remain bullish. A daily close will help to identify the definite momentum in the coming days.