AUDUSD strikes upward after bouncing from 0.7720 to 0.7730 support area. AUDUSD is holding the bullish bias over 0.7800 psychological event level. Will recover further upward 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 22, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7878 area and trying to push downside. After breaking over 0.7800 to 0.7820 resistance area, the bulls pushed the price upside quite impulsively and hit March 2018’s high. As per the current price action, the price may retrace towards the dynamic level of 20 EMA on the intraday chart in the days ahead.
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AUDUSD Holding the Bullish Bias as the Bulls Are Optimistic
AUDUSD is currently residing near 0.7878 area and trying to decline. However, the price is still residing above the Kumo Cloud on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD is holding the bullish bias and currently trading around 0.7878 area. As per the current scenario, if the price can break below the last candle’s low with an impulsive 4-hour bearish candle, the price may retrace towards 0.7820 to 0.7800 support area in the coming days. So, if the price retraced towards 0.7820 to 0.7800 area and bounced higher with an impulsive bullish candle, the bulls may regain momentum and recover upward towards 0.7900 to 0.7910 area again in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price down as a mean reversion. Besides, the Stochastic Oscillator lines are currently residing above the overbought level 80 and had a bearish crossover. It indicates that the bears may regain momentum for a while in the days ahead.
AUDUSD May Sustain the Bullish Trend Further
According to the daily chart, AUDUSD holding the bullish bias and currently residing near 0.7878 area. As per the current price action, if the price retraces towards 0.7820 to 0.7800 support area and bounced upside with an impulsive daily bullish candle, the bulls may sustain the bullish trend towards 0.7900 to 0.7910 area as a first target. The second target will be 0.8050 to 0.8100 key area if the price can break over 0.7900 to 0.7910 area in the coming days.
Image: AUDUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as a strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, the bulls may continue the bullish trend after retracing towards the dynamic level of 20 EMA. A daily close is needed to identify the definite momentum in the coming days.