Chart AUD/USD Update: Extending multi-year bear trend
The anticipated break below the 0.6170 year low of October 2022 has bounced from 0.6140~
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6350 | break level | S1 | 0.6170 | ** | October 2022 (y) low | ||
| R3 | 0.6300 | ** | congestion | S2 | 0.6140~ | intraday low | ||
| R2 | 0.6274 | * | 20 Dec high | S3 | 0.6100 | ** | 76.4% ret of 2020-2021 rally | |
| R1 | 0.6200 | ** | congestion | S4 | 0.6000 | ** | figure |
Asterisk denotes strength of level
14:40 GMT - The anticipated break below the 0.6170 year low of October 2022 has bounced from 0.6140~, as oversold intraday studies unwind, with prices currently balanced in cautious trade around 0.6170. Daily readings continue to track lower and weekly charts are also negative, highlighting a bearish tone and room for continuation of February 2021 losses in the coming sessions. A break below 0.6140 will open up the 0.6100 Fibonacci retracement, but already flat oversold weekly stochastics could limit any initial tests in short-covering/consolidation. Meanwhile, resistance is lowered to congestion around 0.6200. A close above here, if seen, would turn sentiment neutral and prompt consolidation beneath 0.6274/00.