Chart AUD/USD Update: Reversal higher
Cautious trade has given way to a steady reversal higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6735 | ** | 50% ret of Sep-Oct fall | S1 | 0.6600 | * | congestion | |
| R3 | 0.6700 | ** | congestion | S2 | 0.6535~ | ** | 30 Oct (m) low | |
| R2 | 0.6690 | ** | 38.2% ret of Sep-Oct fall | S3 | 0.6500 | ** | congestion | |
| R1 | 0.6650 | break level | S4 | 0.6490 | ** | 76.4% ret of Aug-Sep rally |
Asterisk denotes strength of level
14:40 GMT - Cautious trade has given way to a steady reversal higher, with prices currently trading around 0.6630. Daily stochastics continue to strength and the daily Tension Indicator is rising, highlighting an improvement in sentiment and room for higher in the coming sessions. Immediate focus is on resistance at the 0.6650 break level. But continuation beyond here will open up stronger reactions at 0.6690/00, where fresh profit-taking/consolidation could appear. Meanwhile, support is raised to congestion around 0.6600. A close beneath here, if seen, will turn sentiment neutral and give way to consolidation above strong support at the 0.6535 monthly low of 30 October.