Chart AUD/USD Update: Drifting higher
Cautious trade above congestion support at 0.7150 has given way to a fresh bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7300 | ** | congestion | S1 | 0.7150 | * | congestion | |
| R3 | 0.7277 | ** | 6 May YTD high | S2 | 0.7100 | ** | congestion | |
| R2 | 0.7250 | * | congestion | S3 | 0.7050 | * | congestion | |
| R1 | 0.7200 | ** | congestion | S4 | 0.7000 | * | congestion |
Asterisk denotes strength of level
14:20 BST - Cautious trade above congestion support at 0.7150 has given way to a fresh bounce, with prices reaching 0.7185/90 before settling into fresh consolidation around 0.7175. Daily stochastics are turning down, unwinding overbought areas, suggesting room for further consolidation, before the rising daily Tension Indicator and positive weekly charts prompt further gains. A break above congestion resistance at 0.7200 will improve sentiment and extend late-June gains towards further congestion around 0.7250. However, any immediate break could meet profit-taking beneath strong resistance at the 0.7277 current year high of 6 May.
Meanwhile, a close back below congestion support at 0.7150 will turn sentiment neutral and prompt fresh consolidation above further congestion around 0.7100.