AUDUSD impulsive bullish trend has recovered hundred per cent of the recent drawdown. AUDUSD found resistance around 0.70 area, which is a monthly event level. Can 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.
July 7, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.6950 area and trying to push downward. AUDUSD has become volatile and corrective after rejecting 0.70 event area. The price is currently consolidating inside the ranges of 0.70 to 0.68 area. As per the current price action, AUDUSD needs to take over the correction phase before continuing any definite momentum in the coming days.
Australia’s Central Bank has held its interest rate at an all-time low today. It’s a broadly anticipated choice and said it would help support the monetary recovery by keeping up its accommodative access for “whatever length of time that it is required.”
Furthermore, Governor Philip Lowe said, “Conditions have, however, stabilised recently and the downturn has been less severe than earlier expected.” He also added, “While all-out hours worked in Australia kept on declining in May. The decay was significantly smaller than in April and not exactly recently thought likely. There has likewise been a pick-up in retail spending in response to the decrease in infections and the easing of limitations in the majority of the nation.”
AUDUSD Found Resistance as RBA Held Interest Rate at All-Time Low
AUDUSD is currently residing near 0.6950 area and trying to decline further. Moreover, the price broke below the dynamic level of 20 EMA on the intraday chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD found resistance and currently residing near 0.6950 area. As per the current price action, if the price reaches 0.69 area and bounces higher, the bulls may push the price upside towards 0.70 area again. Alternatively, if the price breaks below 0.69 area with an impulsive bearish close, the bears may push the price down towards 0.68 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing near the price, which needs to be break to decline further in the process. Besides, the Stochastic Oscillator lines are currently residing above the overbought level and may have a bearish intersection. It indicates that bears are gaining momentum slowly.
Bulls Are Still Active in the Market
According to the daily chart, AUDUSD is currently residing near 0.6950 area, after the price found resistance around 0.70 event level. As per the current scenario, if the price can have a daily bearish close below 0.70 area, the bears may decline towards 0.68 support area. Apart from this, if the price bounces from 0.68 support area, the bulls may sustain the bullish trend towards 0.70 area as a first target. The second target will be 0.72 area if the price breaks above 0.70 with a daily bullish close.
Image: AUDUSD Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. It may act as a strong support to push the price upside. Also, the MACD lines are currently residing above the 0.00 level, which is a good indication of upcoming bullish pressure.
To conclude, after recovering hundred per cent of the recent drawdown, AUDUSD has entered into a correction period. But the bullish trend is still active. A daily close is required to identify the definite momentum in the coming days.