Chart AUD/USD Update: Limited tests lower
Cautious trade beneath congestion resistance at 0.6600 is giving way to a pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6723 | 21 Oct (w) high | S1 | 0.6500 | * | congestion | ||
| R3 | 0.6700 | ** | 76.4% ret of Sep-Apr fall | S2 | 0.6450 | congestion | ||
| R2 | 0.6688 | ** | 7 Nov (m) high | S3 | 0.6400 | * | break level | |
| R1 | 0.6600 | ** | congestion | S4 | 0.6360 | ** | break level |
Asterisk denotes strength of level
14:15 BST - Cautious trade beneath congestion resistance at 0.6600 is giving way to a pullback, as intraday studies turn down, with prices currently trading around 0.6550. Overbought daily stochastics are also unwinding, highlighting room for continuation down to congestion support at 0.6500. But the positive daily Tension Indicator and a tick higher in weekly readings should limit scope in renewed consolidation above here. Following cautious trade, fresh gains are looked for. But a close above 0.6600 is needed to turn sentiment positive and extend April gains towards strong resistance at the 0.6688 monthly high of 7 November and the 0.6700 Fibonacci retracement.