AUDUSD has become impulsive and non-volatile after bouncing from 0.7700 to 0.7720 area. AUDUSD strikes above 0.7800 significant event level. Will the price recover further higher 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 10, 2021, | AtoZ Markets – AUDUSD is currently trading around 0.7883 area and trying to push upward. After bouncing from 0.7700 to 0.7720 support level, the bulls have regained momentum and broke over 0.7800 to 0.7820 psychological resistance level. As per the current price action context, the price may revert back to the mean on the intraday chart in the coming days.
AUDUSD Strikes Above As the Bulls Are Optimistic
AUDUSD is currently residing near 0.7883 area and trying to recover further. However, the price had an impulsive weekly bullish candle close above 0.7800 to 0.7820 area last week.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD strikes above and currently trading around 0.7883 area. As per the current price action, AUDUSD may sustain the bullish pressure further towards 0.7900 to 0.7920 area in the process. So, if the price reaches 0.7900 to 0.7920 area and rejects with an impulsive bearish candle close, the bears may regain momentum and push the price down towards 0.7820 to 0.7800 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price downside as a mean reversion. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the bears may regain momentum in the days ahead.
AUDUSD May Continue the Bullish Trend
According to the daily chart, AUDUSD strikes above as the bulls are optimistic. As per the current scenario, the price may recover higher towards 0.7900 to 0.7920 area in the days ahead. So, if the price face strong resistance around 0.7900 to 0.7920 area and had a bearish candle close below it, the price may retrace downside towards 0.7820 to 0.7800 area. In addition to this, if the price retraced towards 0.7820 to 0.7800 area and bounced higher with an impulsive bullish candle, the bulls may sustain the bullish bias towards 0.7900 to 0.7920 area as a first target. The second target will be 0.8000 to 0.8020 area if the price can break above 0.7900 to 0.7920 area in the coming days.
Image: AUDUSD Daily Chart
Furthermore, 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 work as strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. Moreover, the price also broke over the Kumo Cloud, which indicates that the bulls may continue the bullish trend further in the days ahead.
To conclude, after an impulsive bullish breakout, the price requires a downward retracement. As the overall momentum is bullish, there is a high chance that the price may recover further higher after a downside retracement in the coming days.