Chart AUD/USD Update: Smart bounce - back in range
Consolidation following the test of support within the 0.6360 - 0.6400 range has given way to a sharp bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6688 | ** | 7 Nov (m) high | S1 | 0.6450 | congestion | ||
| R3 | 0.6600 | ** | congestion | S2 | 0.6400 | * | break level | |
| R2 | 0.6550 | ** | 61.8% ret of Sep-Apr fall | S3 | 0.6360 | ** | break level | |
| R1 | 0.6500 | * | congestion | S4 | 0.6300/10 | ** | cong; 38.2% ret |
Asterisk denotes strength of level
14:55 BST - Consolidation following the test of support within the 0.6360 - 0.6400 range has given way to a sharp bounce, with prices reaching congestion resistance at 0.650. Unwinding overbought intraday studies are prompting reactions around here. But mixed daily readings are expected to limit any immediate setbacks in consolidation above congestion support at 0.6450. Broader weekly charts remain under pressure. But a close below 0.6360 is needed to turn sentiment negative and extend June losses towards strong support at congestion around 0.6300 and the 0.6310 Fibonacci retracement. Meanwhile, a close above the 0.6550 Fibonacci retracement would turn sentiment positive and extend April gains towards congestion around 0.6600.