AUDUSD rose today morning during the Asian session, but still residing inside the ranges of 0.7820 to 0.7660 area. AUDUSD remains below 0.7750 psychological event level. Will bears continue the bearish pressure further in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
January 25, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7740 area and trying to decline further. After bouncing from 0.7640 to 0.7660 support level, the bulls pushed the price upward quite impulsively. However, it failed to break over 0.7800 to 0.7820 key resistance level. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the daily chart in the coming days.
In addition, U.S. President Joe Biden’s raised monetary package will aid the COVID-19 hit economy essentially, as indicated by a dominant part of business analysts in a Reuters survey. Besides, they anticipate that it should return to its pre Coronavirus size in a year. Moreover, Biden has sketched out a $1.9 trillion stimulus package proposition to kick off the world’s biggest economy. Which has been at the focal point of the Coronavirus pandemic having lost more than 400,000 lives, powering confidence and sending Wall Street stocks to record highs on last week.
On the other hand, Australia stocks were down after the close last week. As losses in the Energy, Gold, and IT sectors drove shares lower. The S&P/ASX 200 were Lynas Rare Earths Ltd (ASX:LYC) is the best performers of the session. Which has risen by 13.70% or 0.670 points to exchange at 5.560 at the end. On the contrary, the Unibail Rodamco Westfield (ASX:URW) is the most noticeably awful performers of the session. Which has fallen by 6.75% or 0.32 points to exchange at 4.42 at the end.
AUDUSD Remains Below as the Price Requires a Downside Retracement
AUDUSD is currently residing near 0.7740 area and trying to push downward. However, the price is still residing over the dynamic level on the daily chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD remains below and currently trading around 0.7740 area. As per the current price action, if the price can have a bearish candle close below 0.7750 to 0.7740 area, the bears may sustain the bearish pressure towards 0.7660 to 0.7640 area in the process. Alternatively, if the price breaks 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 days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing near the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as strong resistance if the price had a 4-hour bearish candle close below it in the process. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the coming days. On the contrary, the bulls may regain momentum if the price had a bullish candle close above the dynamic level in the coming days.
AUDUSD May Retrace Downward
According to the daily chart, AUDUSD remains below as the price requires a downward retracement. As per the current scenario, if the price pushes further downward and breaks below 0.7660 to 0.7640 support level, the price may retrace down towards 0.7460 to 0.7420 support level in the coming days.
Image: AUDUSD Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upward. Alternatively, the bears may sustain the bearish pressure further if the price can break below the dynamic level in the days ahead. Also, the MACD lines are currently residing above the price and had a bearish crossover. Besides, the histograms are gradually sloping down. Both indicate that bears may continue the bearish pressure further in the days ahead.
To conclude, after an extended period of bullish momentum, the price requires a downside retracement. An impulsive daily close is required to identify the definite momentum in the coming days.