AUDUSD has become impulsive and non-volatile after bouncing from 0.7600 to 0.7620 support level. AUDUSD found support around 0.7600 psychological event level. Will bulls sustain the bullish bias further 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.
February 1, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7660 area and trying to climb upside. After breaking over 0.7600 to 0.7620 resistance level, the bulls pushed the price upward quite impulsively, but failed to break over 0.7800 to 0.7820 key resistance level. As per the current price action, the price may face strong resistance at the dynamic level of 20 EMA on the intraday chart in the days ahead.
In addition, Mary Daly, San Francisco Federal Reserve President, said on Friday that she anticipates a “sharp bounce back” in financial activity again individuals are vaccinated against Coronavirus. However, the Fed’s work to take more Americans back to the labor force won’t be accomplished for quite a while after. On the other hand, the Australian economy is doing great during this pandemic situation.
AUDUSD Found Support as the US Dollar Index Weaken
AUDUSD is currently residing near 0.7660 area and trying to recover higher. However, the price is also broke below the Kijun line and the Tenkan line on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD found support and currently trading around 0.7660 area. As per the current price action, if the price can break over 0.7660 to 0.7670 resistance area with an impulsive bullish candle, the bulls may sustain the bullish pressure towards 0.7800 to 0.7820 area in the process. Alternatively, if the price rejects 0.7670 to 0.7660 area with a bearish candle, the bears may regain momentum and decline towards 0.7620 to 0.7600 area as a first target. The second target will be 0.7520 to 0.7500 area if the price breaks below 0.7620 to 0.7600 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. Besides, the MACD lines are currently residing below the 0.00 level and had a bullish crossover. It indicates that bulls may sustain the bullish pressure further in the coming days. On the contrary, the histograms gradually sloping downside. It indicates that bears may regain momentum in the process.
AUDUSD May Decline Further
According to the daily chart, AUDUSD found support and currently residing near 0.7660 area. As per the current scenario, if the price rejects 0.7670 to 0.7660 area and had a daily bearish candle close below 0.7620 to 0.7600 area, the bears may regain momentum and push the price down towards 0.7520 to 0.7500 area as a first target. The second target will be 0.7420 to 0.7400 area if the price breaks below 0.7520 to 0.7500 area in the coming days.
Image: AUDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level of 20 EMA may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, as long as the price residing below the dynamic level, the bias will remain bearish. A daily close is required to identify the definite momentum in the days ahead.