Chart AUD/USD Update: Room for lower
The anticipated test lower has reached support within the 0.6360 - 0.6400 range
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6600 | ** | congestion | S1 | 0.6400 | * | break level | |
| R3 | 0.6550 | ** | 61.8% ret of Sep-Apr fall | S2 | 0.6360 | ** | break level | |
| R2 | 0.6500 | * | congestion | S3 | 0.6300/10 | ** | cong; 38.2% ret | |
| R1 | 0.6450 | congestion | S4 | 0.6235 | ** | 50% ret of Apr-Jun rally |
Asterisk denotes strength of level
14:10 BST - The anticipated test lower has reached support within the 0.6360 - 0.6400 range, where flat oversold intraday studies are prompting consolidation. Daily readings have turned down and broader weekly charts are also coming under pressure, highlighting a deterioration in sentiment and room for deeper losses in the coming sessions. A close below 0.6360 will add weight to sentiment and extend June losses towards strong support at congestion around 0.6300 and the 0.6310 Fibonacci retracement. Already oversold daily stochastics could limit any initial tests in consolidation. Meanwhile, a close back above congestion resistance at 0.6450 will help to stabilise price action and prompt consolidation beneath further congestion around 0.6500.