Chart AUD/USD Update: Room for a minor test higher
Little change, as prices extend consolidation beneath the 0.6950 weekly high of 3 July
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7100 | ** | congestion | S1 | 0.6900 | * | congestion | |
| R3 | 0.7050 | * | congestion | S2 | 0.6850 | ** | 50% ret of Nov-May rally | |
| R2 | 0.7000 | * | congestion | S3 | 0.6833 | ** | 30 Mar (m) low | |
| R1 | 0.6950 | 3 Jul (w) high | S4 | 0.6750 | ** | 61.8% ret of Nov-May rally |
Asterisk denotes strength of level
14:40 BST - Little change, as prices extend consolidation beneath the 0.6950 weekly high of 3 July. Daily readings are rising and oversold weekly stochastics are flattening, highlighting room for fresh gains in the coming sessions. But the bearish weekly Tension Indicator and deteriorating longer-term charts should limit any immediate break above here in renewed selling interest beneath congestion resistance at 0.7000. Following cautious/corrective trade, fresh losses are looked for. A break below congestion support at 0.6900 will turn sentiment neutral. But a further close below the 0.6850 Fibonacci retracement and the 0.6833 monthly low of 30 March would turn sentiment negative and extend May losses towards 0.6750 retracement.