AUDUSD has become impulsive and strikes upside today during the Asian session. AUDUSD sustains above 0.7200 psychological support level. Bulls to continue the bullish bias further? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
November 16, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7285 area and facing resistance around 0.7300 area. After bouncing from the 0.7220 support level, the bulls regained momentum and recover higher quite impulsively. As per the current price action, the price may retrace towards the dynamic level of 20 EMA on the daily chart in the coming days.
The number of new COVID-19 cases over the U.S. climbed on Friday to a day by day record of more than 177,000, the fourth consecutive day an untouched high was set, as per a Reuters tally of figures from the U.S. general health organizations. Moreover, the quantity of COVID-19 patients in the U.S. hospitals climbed to an all-time high of 68,141 last Friday.
On the other hand, the Australian province of South Australia indicated 14 new Covid-19 cases on Monday from three cases the earlier day, which incited a neighboring state to reimpose outskirt controls and the central government to offer assistance.
AUDUSD Sustains Above as the Coronavirus Surge in the United States Again
AUDUSD is currently residing near 0.7285 area and trying to decline. However, the price broke above 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 0.7285 area. As per the current scenario, if the price can have an impulsive bearish candle close below 0.7320 to 0.7300 resistance area, the bears may push the price downside towards 0.7220 to 0.7200 area in the process. So, if the price declines towards 0.7220 to 0.7200 area and creates a double bottom, the bulls may regain momentum and recover higher towards 0.7300 to 0.7320 area again.
In addition, the dynamic level of 20 EMA is currently residing below the price. It may work as strong support to push the price upside. Also, the Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish cross over. It indicates that bears may regain momentum in the days ahead.
AUDUSD Bulls May Reach September’s Key Level
According to the daily chart, AUDUSD sustains above as bulls are still optimistic. As per the current price action, if the price can have a daily bearish candle close below 0.7320 to 0.7300 area, the bears may retrace towards 0.7220 to 0.7200 area. So, if the price retraces towards 0.7220 to 0.7200 area and bounced upward with an impulsive bullish candle, the bulls may recover higher towards 0.7300 to 0.7320 area as a first target. The second target will be 0.7400 to 0.7410 area.
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. The dynamic level may act as a 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. Also, the Kumo Cloud may work as strong support.
To conclude, after an extended period of volatility, the bulls have regained momentum. A daily close is required to identify the definite momentum in the days ahead.