Chart AUD/USD Update: Consolidating - gains to remain limited
Little change, as mixed intraday studies keep near-term sentiment cautious
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6688 | * | 7 Nov (m) high | S1 | 0.6500 | * | congestion | |
| R3 | 0.6625 | 24 Jul YTD high | S2 | 0.6400 | * | break level | ||
| R2 | 0.6600 | ** | congestion | S3 | 0.6360 | ** | break level | |
| R1 | 0.6550 | * | congestion | S4 | 0.6335 | ** | 38.2% ret of Apr-Jul rally |
Asterisk denotes strength of level
14:35 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and extend consolidation around 0.6525. Daily stochastics are rising and the daily Tension Indicator is also turning up, suggesting room for a test of congestion resistance around 0.6550. However, negative weekly charts should limit any break above here in renewed selling interest towards further congestion around 0.6600. Following corrective trade, fresh losses are looked for. Support is raised to congestion around 0.6500 and extends to 0.6400. But a close below 0.6360 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.