Chart AUD/USD Update: Further gains to remain limited
Consolidation around 0.6500 is giving way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6688 | * | 7 Nov (m) high | S1 | 0.6500 | * | congestion | |
| R3 | 0.6625 | 24 Jul YTD high | S2 | 0.6400 | * | break level | ||
| R2 | 0.6600 | ** | congestion | S3 | 0.6360 | ** | break level | |
| R1 | 0.6550 | * | congestion | S4 | 0.6335 | ** | 38.2% ret of Apr-Jul rally |
Asterisk denotes strength of level
14:35 BST - Consolidation around 0.6500 is giving way to anticipated gains, with prices currently balanced around 0.6525 following the run to 0.6540. Daily stochastics are rising and the flat daily Tension Indicator is also turning up, suggesting room for a test of congestion around 0.6550. However, negative weekly charts should limit any break above here in renewed selling interest towards further congestion around 0.6600. Following corrective trade, fresh losses are looked for. Support is raised to congestion around 0.6500 and extends to 0.6400. But a close below 0.6360 is needed to turn sentiment negative and confirm a near-term top in place around 0.6600, as July losses then extend initially towards the 0.6335 Fibonacci retracement.