Published: 2024-10-21T13:56:01.000Z
Chart AUD/USD Update: Cautious trade - background under pressure
Senior Technical Strategist
-
Little change, as prices extend cautious trade around congestion support at 0.6700
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 0.6900 | * | congestion | S1 | 0.6700 | ** | congestion | |
R3 | 0.6840 | break level | S2 | 0.6645 | ** | 50% ret of Aug-Sep rally | ||
R2 | 0.6800 | ** | break level | S3 | 0.6622 | ** | 11 Sep (m) low | |
R1 | 0.6760 | break level | S4 | 0.6600 | * | congestion |
Asterisk denotes strength of level
14:40 BST - Little change, as prices extend cautious trade around congestion support at 0.6700. Oversold daily stochastics are unwinding and the bearish daily Tension Indicator is flattening, suggesting potential for a test higher in the coming sessions. But negative weekly charts are expected to limit scope in renewed selling interest towards resistance at 0.6760. Following corrective trade, lower levels are looked for. However, a close below support at the 0.6645 Fibonacci retracement is needed to turn sentiment outright negative and extend September losses towards the 0.6622 monthly low of 11 September. Initial tests could give way to range trade, before prices continue lower.