AUDUSD Strikes Higher Above 0.7180 – Can Bears Regain Momentum?


AUDUSD bulls have regained momentum today morning during the Asian session. AUDUSD strikes higher above 0.7180 short-term resistance level. Will bears regain momentum? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis. 

October 5, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7185 area and trying to recover higher. The price found support at the dynamic level of 20 EMA on the intraday chart and pushed upward quite impulsively. As per the current price action, the price may face strong resistance around 0.7195 to 0.7208 area in the coming days.

U.S. President Donald Trump remains hospitalized subsequent to being diagnosticated with Covid-19, and his health will be the main consideration for business sectors in the week ahead. Investors will likewise be intently following the progression of fiscal stimulus talks in Washington. In the hopes for a contract on another support package. A new round of stimulus would reinforce markets which have been roiled by the doubtfulness fore of the future presidential election and fears that the financial recuperation is running out of steam.

AUDUSD Strikes Higher as the U.S. President Donald Trump Remains Hospitalized

AUDUSD is currently residing near 0.7185 area and trying to climb upside. However, the price also found support at the Kumo Cloud on the intraday chart.

AUDUSD Strikes Higher

Image: AUDUSD 4 Hour Chart

According to the 4-hour chart, AUDUSD strikes higher and currently residing near 0.7185 area. As per the current price action, if the price reaches 0.7195 to 0.7208 area and rejects with an impulsive bearish candle close, the bears may regain momentum and push the price down towards 0.7133 to 0.7114 area in the coming days. Alternatively, if the price breaks above 0.7195 to 0.7208 area with an impulsive bullish candle close, the bulls may sustain the bullish pressure towards 0.7255 to 0.7275 area in the process.

In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may work as strong support to push the price upward. Besides, the Kijun line and the Tenkan lines may work as a confluence of the dynamic level in the coming days.

AUDUSD Bears Still Have Some Chances

According to the daily chart, AUDUSD strikes higher and currently trading around 0.7185 area. As per the current price action, if the price reaches 0.71950 to 0.7208 area and rejects with a daily bearish candle close, the bears may regain momentum and decline towards 0.7030 to 0.6975 area in the coming days. In contrast, if the price breaks above 0.71950 to 0.7208 area with an impulsive bullish candle close, the bulls may sustain the bullish pressure towards 0.7255 to 0.7275 area in the days ahead.

AUDUSD Strikes Higher

Image: AUDUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing near the price. So, if the price can have a bearish close below it, the bears may regain momentum. Alternatively, a bullish close above the dynamic level may indicate that the price may recover further in the coming days. Also, the RSI line is currently residing below mid-level 50 and gradually slopping downside. It indicates that the price may push downside in the coming days.

To conclude, after an impulsive bearish pressure, the price retraced around 50 per cent and also towards the dynamic level of 20 EMA. A daily close is required to identify the definite momentum in the coming days. 

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