AUDUSD rose today morning during the Asian session as bulls are still optimistic. AUDUSD sustains above 0.7600 psychological event level. Will continue the bullish trend 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 4, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7710 area and trying to recover higher. After bouncing from 0.7500 to 0.7520 support area, the bulls pushed the price upward quite impulsively and hit February 2018’s high. As per the current price action, AUDUSD may face strong resistance around 0.7750 to 0.7800 area in the coming days.
Moreover, U.S. Families in all cases developed savings during the pandemic, yet low-pay families are spending their money more rapidly than higher-pay families and could be out of savings soon if more support isn’t freed, as indicated by a study delivered on Wednesday. Also, before the end of October, the middle low-pay family spent 64% of the additional money they amassed for the current year contrasted and a year ago, leaving them with about $236 in additional money, as per a report delivered Wednesday by the JPMorgan Chase Institute. Conversely, the higher-pay family lost only 38% of the money cushion developed for the current year and had a middle $810 in savings, the investigation found.
On the other hand, Australia will celebrate the new year with harsher limitations on movement, social occasions, and inner boundaries as the nation’s two biggest states fight to suppress new COVID-19 cases in their capital cities.
AUDUSD Sustains Above as Bulls Are Still Optimistic
AUDUSD is currently residing near 0.7710 area and trying to push upside. However, the price still maintained the bullish bias over the dynamic level of 20 EMA on the intraday chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD sustains above and currently trading around 0.7710 area. As per the current price action, if the price pushes further upward towards 0.7750 to 0.7800 area and rejects with an impulsive bearish candle close, the bears may regain momentum and decline towards 0.7620 to 0.7600 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may push the price upward as strong support. So, the bears may regain momentum if the price can break below the dynamic level in the process. Also, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. It indicates that bears may regain momentum in the coming days.
AUDUSD May Revert Back to the Mean
According to the daily chart, AUDUSD sustains above but requires a downside retracement. As per the current price action, if the price pushes further upward and rejects 0.7800 to 0.7750 resistance zone with a daily bearish candle, the price may retrace downside towards 0.7620 to 0.7600 area. So, if the price retraced down and bounced higher from 0.7620 to 0.7600 area, AUDUSD may sustain the bullish trend towards 0.7750 to 0.7800 area as a first target. The second target will be 0.7880 to 0.7900 area if the price breaks above 0.7750 to 0.7800 in the process.
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 pull the price down as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.
To conclude, after an extended period of bullish momentum, the price requires a downside retracement before continuing the bullish trend further. A daily close is required to identify the definite momentum in the coming days.