Chart AUD/USD Update: Leaning lower
Cautious trade around 0.6550 has given way to the anticipated test of congestion support at 0.6500
| 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 around 0.6550 has given way to the anticipated test of congestion support at 0.6500, where unwinding oversold intraday studies are prompting fresh reactions. Overbought daily stochastics are unwinding and the daily Tension Indicator is turning bearish, highlighting room for continuation beneath here. A break will open up further congestion around 0.6450., with room for still deeper losses as overbought weekly stochastics also turn down. Meanwhile, resistance remains at congestion around 0.6600. A close above here 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.