AUDUSD fall today morning during the Asian session with a strong bearish candle. AUDUSD is facing resistance around 0.7570 key area. Bears to regain the bearish momentum in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
December 14, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7540 area and trying to push downside. After bouncing from 0.7350 to 0.7400 support area, the bulls pushed the price upward quite impulsively but failed to break above 0.7550 to 0.7570 key area. The price also broke below the dynamic level of 20 EMA on the intraday chart. As per the current price action, AUDUSD may revert back to the mean in the coming days.
Moreover, A bipartisan group of lawmakers will uncover a $908 billion Covid-19 pandemic abatement bill on Monday, despite the fact that there’s “no assurance” Congress will pass it, one of the key mediators said. In addition, Senator Joe Manchin, a West Virginia Democrat, said on “Fox News Sunday”, “We were on a call all day yesterday, we’ll jump on a call again this evening to wrap things up.” He also added, “We’ll have a bill created for the American individuals tomorrow, $908 billion.”
On the other hand, England’s trade chats with Australia are propelling great, Trade Minister Liz Truss said on Sunday, talking after the most recent round of dealings and with the two sides had made starting proposals on goods market access.
AUDUSD Facing Resistance as the Price Requires a Downside Retracement
AUDUSD is currently trading around 0.7540 area and trying to decline. However, AUDUSD has achieved around 170 pips after bouncing from 0.7350 to 0.7400 support area.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD facing resistance and currently residing near 0.7540 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.7520 area, the bears may sustain the bearish pressure towards 0.7400 to 0.7350 support zone 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. However, the bears may continue the bearish pressure towards 0.7400 to 0.7350 area if the price can break below the dynamic level in the process. Besides, the MACD lines are currently residing above the 0.00 level and may have a bearish cross over. It indicates that bears may regain momentum in the days ahead.
AUDUSD May Revert Back to the Mean
According to the daily chart, AUDUSD facing resistance and currently residing near 0.7540 area. As per the current scenario, if the price can have an impulsive bearish candle close below 0.7570 to 0.7550 area, the bears may regain momentum and decline towards 0.7400 to 0.7350 area in the process. So, if the price retraces towards 0.7400 to 0.7350 area and bounced upside, AUDUSD may sustain the bullish trend towards 0.7550 to 0.7570 area as a first target. The second target will be 0.7650 to 0.7670 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 pull the price down as a mean reversion. Besides, the Bollinger Bands middle band 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 bulls continue further. A daily close will help to identify the definite momentum in the coming days.