Chart AUD/USD Update: Limited tests higher
Cautious trade around 0.6420 has given way to a sharp USD-driven bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6688 | ** | 7 Nov (m) high | S1 | 0.6400 | * | break level | |
| R3 | 0.6625 | 24 Jul YTD high | S2 | 0.6360 | ** | break level | ||
| R2 | 0.6600 | ** | congestion | S3 | 0.6335 | ** | 38.2% ret of Apr-Jul rally | |
| R1 | 0.6500 | * | congestion | S4 | 0.6300 | * | congestion |
Asterisk denotes strength of level
14:30 BST - Cautious trade around 0.6420 has given way to a sharp USD-driven bounce, with prices currently trading around 0.6485. Intraday studies have turned higher and oversold daily stochastics are flattening, suggesting room for a test of congestion resistance at 0.6500. But the negative daily Tension Indicator and bearish weekly charts should limit any break in renewed selling interest beneath further congestion around 0.6600. Meanwhile, support remains at 0.6400 and extends to 0.6360. A close beneath here is needed to turn sentiment negative and confirm a near-term top in place around 0.6600, as July losses then extend initially towards the 0.6335 Fibonacci retracement.