AUDUSD Plunge Below 0.7720 Event Area – Bears To Continue Further Downside?


AUDUSD bears have regained momentum and dropped below 0.7730 to 0.7720 support level. AUDUSD plunge below 0.7720 significant event area. Bears to continue 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.

June 14, 2021, | AtoZ MarketsAUDUSD is currently trading around 0.7707 area and trying to push upside. After an extended period of volatility, the price found resistance at the bullish expanding triangle pattern and pushed down. However, the bears failed to sustain the bearish pressure below 0.7690 to 0.7680 area and bounced upside. As per the current price action, the price may retrace higher toward the dynamic level on the intraday chart in the coming days.

AUDUSD Plunge Below as the Price Faced Strong Resistance

AUDUSD is currently residing near 0.7707 area and trying to retrace higher. However, the price also faced support at the Bollinger Bands lower band on the intraday chart.

AUDUSD Plunges

Image: AUDUSD 4 Hour Chart

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According to the 4-hour chart, AUDUSD plunge below and currently trading around 0.7707 area. As per the current price action, the price may retrace upward towards 0.7720 to 0.7730 area in the process. So, if the price retrace towards 0.7720 to 0.7730 area and rejects with an impulsive bearish candle close, the bears may sustain the bearish pressure towards 0.7690 to 0.7680 area again in the coming days. On the contrary, if the price can break above 0.7720 to 0.7730 resistance area with an impulsive bullish candle, the bulls may regain momentum and push the price higher towards 0.7770 to 0.7780 area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the bulls may regain momentum if the price can break above the dynamic level in the coming days.

AUDUSD May Decline Further

According to the daily chart, AUDUSD plunge below as the bears are optimistic. As per the current scenario, if the price can have an impulsive daily bearish candle close below 0.7690 to 0.7680 area, the bears may continue the bearish pressure further towards 0.7600 to 0.7570 area in the coming days.

AUDUSD Plunges

Image: AUDUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing over the price, which has already worked as strong resistance last week. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish crossover. It indicates that the bears may sustain the bearish pressure further in the process.

To conclude, after an extended period of volatility, the price had an impulsive daily bearish candle close below 0.7730 to 0.7720 area. As the overall momentum is still bearish, there is a high chance that the bears may sustain the bearish pressure further in the coming days. 

 

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