AUDUSD has become volatile and currently residing inside the ranges of 0.7820 to 0.7680 area. AUDUSD nose dive below 0.7750 intraday event level. Will the bears push the price further downside 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.
May 3, 2021, | AtoZ Markets - AUDUSD is currently trading around 0.7725 area and trying to recover higher. The price has faced strong resistance around 0.7820 to 0.7800 psychological area several times and broke below the uptrend line on the intraday chart. As per the current price action context, the price may retrace upside towards the dynamic level of 20 EMA on the intraday chart in the coming days.
AUDUSD Nose Dive as the Resistance Level Worked Strongly
AUDUSD is currently residing near 0.7725 area and trying to push upside. However, the price also broke below the dynamic level with a strong daily bearish candle.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD nose dive and currently trading around 0.7725 area. As per the current price action, the price may retrace upside towards 0.7740 to 0.7750 area in the process. So, if the price retraces towards 0.7740 to 0.7750 area and rejects with a bearish candle, the bears may regain momentum and push the price down towards 0.7690 to 0.7680 area in the days ahead. On the contrary, if the price can break above 0.7740 to 0.7750 area with an impulsive bullish candle, the bulls may recover higher towards 0.7800 to 0.7820 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. However, the bulls may regain momentum if the price can break above the dynamic level in the process. Moreover, the MACD lines are currently residing below the 0.00 level and gradually sloping downward. It indicates that the bears may sustain the bearish pressure further in the days ahead.
AUDUSD May Decline Further
According to the daily chart, AUDUSD nose dive as the bears are optimistic. As per the current price action, if the price can break below 0.7690 to 0.7680 area with an impulsive daily bearish candle, the bears may sustain the bearish pressure towards 0.7570 to 0.7550 area as a first target. The second target will be 0.7420 to 0.7400 area if the price can break below 0.7570 to 0.7550 support area in the coming days.
Image: AUDUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing near the price. Along with the Bollinger Bands middle band. So, if the price can break below the dynamic level of 20 EMA and the Bollinger Bands' middle band with an impulsive bearish candle, the bears may push the price further downward in the days ahead.
To conclude, as long as the price residing below 0.7820 to 0.7800 psychological resistance area, the bias will remain bearish. An impulsive daily breakout is needed to identify the definite momentum in the coming days.