AUDUSD Volatility Increased Below 0.7800 Area – What Next?


AUDUSD has become corrective and still residing inside the ranges of 0.7810 to 0.7700 area. AUDUSD volatility increased below 0.7800 psychological event area. What is next? Bulls to regain momentum in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s AUD/USD Technical Analysis.

May 24, 2021, | AtoZ Market – AUDUSD is currently trading around 0.7740 area and trying to recover higher. After breaking over 0.7800 to 0.7810 resistance area, the bulls pushed the price upside impulsively, but failed to sustain the bullish pressure over 0.7880 to 0.7900 key area. As per the current price action context, the price may face strong resistance around 0.7760 to 0.7750 area in the coming days.

AUDUSD Volatility Increased Inside the Range

AUDUSD is currently residing near 0.7740 area and trying to push higher. However, the price also broke below the dynamic level of 20 EMA 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 0.7740 area. As per the current price action, the price may retrace upside towards 0.7750 to 0.7760 area in the coming days. So, if the price retraced upward towards 0.7750 to 0.7760 area and rejects with an impulsive bearish candle, the bears may regain momentum and push the price down towards 0.7710 to 0.7700 area in the process. On the contrary, if the price can break above 0.7750 to 0.7760 area with an impulsive bullish candle, the bulls may push the price higher towards 0.7800 to 0.7810 area in the days ahead.

Furthermore, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. However, the bulls may regain momentum if the price can break above the dynamic level in the process. In addition, the Stochastic Oscillator lines are currently residing near the oversold level 20 and had a bullish crossover. It indicates that the bulls may regain momentum in the coming days.

AUDUSD Bulls Are Still Optimistic

According to the daily chart, AUDUSD volatility increased, but the bulls are still optimistic. As per the current scenario, if the price can have an impulsive daily bullish candle close above the uptrend line, the bulls may push the price upward towards 0.7800 to 0.7810 area as a first target. The second target will be 0.7880 to 0.7900 area if the price can break over 0.7800 to 0.7810 area in the process. On the other hand, if the price can break below the uptrend and had a daily bearish candle close below 0.7710 to 0.7700 area, the bears may regain momentum and push the price downside towards 0.7620 to 0.7600 area in the days ahead.

AUDUSD Volatility Increased

Image: AUDUSD Daily Chart

Moreover, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price down. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. However, the Kumo Cloud is still holding the price as strong support, which indicates that the bulls may regain momentum in the days ahead.

To conclude, as long as the price residing over the uptrend line, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days. 

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