Chart AUD/USD Update: Bounce back into range
The test of congestion support at 0.6450 has given way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6750 | * | congestion | 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
14:35 BST - The test of congestion support at 0.6450 has given way to a bounce, as intraday studies track higher and oversold daily stochastics tick up, with steady gains currently trading around 0.6530. A test of minor resistance at 0.6550 cannot be ruled out. But the bearish daily Tension Indicator and deteriorating weekly charts should limit any extension beyond here in renewed selling interest beneath congestion around 0.6600. Meanwhile, support remains down to 0.6450. A close beneath here will add weight to sentiment and open up 0.6400. However, a break below 0.6360 is needed to extend July losses and confirm a near-term top in place around 0.6600.