Chart AUD/USD Update: Limited downside tests
Cautious trade around congestion resistance at 0.6550 has given way to a sharp pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6700 | ** | 76.4% ret of Sep-Apr fall | S1 | 0.6500 | * | congestion | |
| R3 | 0.6688 | ** | 7 Nov (m) high | S2 | 0.6450 | congestion | ||
| R2 | 0.6600 | ** | congestion | S3 | 0.6400 | * | break level | |
| R1 | 0.6550 | * | congestion | S4 | 0.6360 | ** | break level |
Asterisk denotes strength of level
14:20 BST - Cautious trade around congestion resistance at 0.6550 has given way to a sharp pullback, with prices currently consolidating the test below congestion support at 0.6500. Intraday studies are mixed/negative and overbought daily stochastics are unwinding, suggesting room for a fresh test beneath here. However, the positive daily Tension Indicator and mixed weekly charts are expected to limit scope in renewed buying interest/consolidation towards further congestion around 0.6450. Meanwhile, resistance remains at 0.6550. A close above here, if seen, will open up congestion around 0.6600, where fresh selling interest is expected to appear.