AUDUSD Volatility Increased Around 0.7400 Area – Bears to Regain Momentum?


AUDUSD has become volatile and corrective but still maintain the price above the dynamic level. AUDUSD volatility increased around 0.7400 to 0.7420 key resistance level. Bears to regain momentum? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis. 

November 30, 2020, | AtoZ Markets – AUDUSD is currently trading around 0.7390 area and trying to reject 0.7400 area. After breaking above 0.7300 to 0.7320 area, the bulls pushed the price higher quite impulsively but failed to maintain the momentum further.  As per the current price action, the price may revert back to the mean in the coming days.

The RBA (Reserve Bank of Australia) will probably hold its interest rate at a historic low of 0.1% at its month to a month strategy meeting on December 1, demonstrated a Reuters survey of 15 economists. The national bank is additionally liable to keep up its A$100 billion ($73.93 billion) quantitative facilitating program, purchasing five-to ten-year government bonds, the survey showed.

On the other hand, it’s a major week for U.S. data with the salvation of the November jobs report on Friday, yet market psychology is bound to be directed by news about the circumstance of vaccine distribution and worries about more forceful measures to defences the spread of the infection after the Thanksgiving occasion.

AUDUSD Volatility Increased as RBA Hold It Interest Rate at a Historic Low

AUDUSD is currently residing near 0.7390 area and trying to push downside. Moreover, the price is still residing above the Kijun line and the Tenkan line on the intraday chart.

AUDUSD Volatility Increased

Image: AUDUSD 4 Hour Chart

According to the 4-hour chart, AUDUSD volatility increased and currently trading around 0.7390 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.7420 to 0.7400 area, the bears may regain momentum and decline towards 0.7320 to 0.7300 area in the process. Alternatively, if the price breaks above 0.7400 to 0.7420 area impulsively, the bulls may sustain the bullish pressure towards 0.7480 to 0.7500 area in the days ahead.

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 act as a strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the coming days.

AUDUSD May Revert Back to the Mean

According to the daily chart, AUDUSD volatility increased as the key resistance working strongly. As per the current scenario, if the price can have an impulsive bearish candle close below 0.7420 to 0.7400 area, the bears may retrace downside towards 0.7320 to 0.7300 area in the day ahead. So, if the price retraces towards 0.7320 to 0.7300 area and bounced upside, AUDUSD may recover higher towards 0.7400 to 0.7420 area as a first target. The second target will be 0.7480 to 0.7500 area if the price can break above 0.7400 to 0.7420 area in the process.

AUDUSD Volatility Increased

Image: AUDUSD Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price downside as a mean reversion. Also, the MACD lines are currently residing above 0.00 level and created a bearish divergence. It indicates that bears may regain momentum in the day ahead.

To conclude, as long as the price residing above 0.7300 to 0.7320 area, the bias will remain bullish. A daily close is required to identify the definite momentum in the coming days. 

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