Chart AUD/USD Update: Strong resistance at 0.6400/25
Cautious trade around 0.6300 has given way to fresh gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6550 | ** | 61.8% ret of Sep-Apr fall | S1 | 0.6300 | ** | congestion | |
| R3 | 0.6500 | * | congestion | S2 | 0.6200 | ** | congestion | |
| R2 | 0.6425 | ** | 50% ret of Sep-Apr fall | S3 | 0.6000 | ** | historic congestion | |
| R1 | 0.6400 | ** | break level | S4 | 0.5913 | * | 9 Apr YTD low |
Asterisk denotes strength of level
08:55 BST - Cautious trade around 0.6300 has given way to fresh gains, with prices currently trading around 0.6365. Immediate focus is on resistance at the 0.6400 break level and the 0.6425 Fibonacci retracement. But mixed intraday studies and overbought daily stochastics are expected to limit any initial tests in consolidation. The daily Tension Indicator continues to rise, however, and broader weekly charts are mixed/positive, highlighting potential for further strength. But a close above 0.6400/25 is needed to confirm a significant low in place at the 0.5913 current year low of 9 April, and extend gains initially towards 0.6500. Meanwhile, support is raised to congestion around 0.6300. A close beneath here, if seen, will help to stabilise price action and prompt consolidation above further congestion around 0.6200.