Chart AUD/USD Update: Gains to remain limited
Cautious trade above support at the 0.6440 monthly low of 14 October has given way to a bounce to congestion resistance at 0.6500
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6630 | * | break level | S1 | 0.6440 | ** | 14 Oct (m) low | |
| R3 | 0.6600 | ** | congestion | S2 | 0.6400 | ** | congestion | |
| R2 | 0.6550 | * | congestion | S3 | 0.6350 | ** | congestion lows | |
| R1 | 0.6500 | * | congestion | S4 | 0.6310 | ** | 38.2% ret of Apr-Sep rally |
Asterisk denotes strength of level
14:30 GMT - Cautious trade above support at the 0.6440 monthly low of 14 October has given way to a bounce to congestion resistance at 0.6500, where unwinding overbought intraday studies are prompting short-term reactions. Oversold daily stochastics are unwinding and the flat daily Tension Indicator is edging higher, suggesting potential for a test above here. But mixed/negative weekly charts are expected to limit scope in renewed selling interest towards further congestion around 0.6550. Meanwhile, a close below 0.6440 will turn sentiment negative and extend mid-September losses initially to congestion around 0.6400. Beneath here are congestion lows around 0.6350.