AUDUSD has become volatile and corrective, but the bears still maintain the momentum. AUDUSD sustains below 0.7150 psychological event level. Bears to continue lower? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.
October 26, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7120 area and trying to push downside. The price is still residing underneath the dynamic level of 20 EMA, according to the daily chart. As per the current price action, the price may face strong support around 0.7100 to 0.7090 area in the coming days.
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AUDUSD Sustains Below as COVID-19 Cases Raised in Australia
AUDUSD is currently trading around 0.7120 area and trying to decline. However, the price is still residing above the dynamic level of 20 EMA on the intraday chart.
Image: AUDUSD 4 Hour Chart
According to the 4-hour chart, AUDUSD sustains below and currently residing near 0.7120 area. As per the current price action, if the price pushes lower and breaks below 0.7100 to 0.7090 support area, the bears may sustain the bearish pressure towards 0.7020 to 0.7000 area in the days ahead. Alternatively, if the price bounces from 0.7100 to 0.7090 area with an impulsive bullish candle close, the bulls may regain momentum and recover upward towards 0.7140 to 0.7150 area as a first target. The second target will be 0.7200 to 0.7210 area if the price can break above 0.7140 to 0.7150 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing near the price. Bears may regain momentum if the price can break below it. Moreover, the Stochastic Oscillator lines are currently residing below the overbought level 80 and gradually sloping downside. It indicates that bears may regain momentum and continue the bearish pressure further in the coming days.
AUDUSD Bears Are Optimistic
According to the daily chart, AUDUSD sustains below and currently residing near 0.7120 area. As per the current scenario, if the price can have a bearish candle close below 0.7150 to 0.7140 area, the bears may continue lower towards 0.7020 to 0.7000 area as a first target. The second target will be 0.6820 to 0.6800 area if the price can break below 0.7020 to 0.7000 area in the process.
Image: AUDUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line. The dynamic level may act as strong resistance to push the price downward. Besides, the Kijun line may work as a confluence of the dynamic level in the process. However, the price is still residing below the Kumo Cloud. It’s a good bearish continuation sign.
To conclude, after a strong bullish pressure, the price is currently facing strong resistance around 0.7150 to 0.7140 area. A daily close is required to identify the definite momentum in the coming days.