Chart AUD/USD Update: Potential for a minor test lower
Little change, as mixed intraday studies keep near-term sentiment cautious and prompt consolidation around 0.6550
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.6723 | 21 Oct (w) high | S1 | 0.6500 | * | congestion | ||
| R3 | 0.6700 | ** | 76.4% ret of Sep-Apr fall | S2 | 0.6450 | congestion | ||
| R2 | 0.6688 | ** | 7 Nov (m) high | S3 | 0.6400 | * | break level | |
| R1 | 0.6600 | ** | congestion | S4 | 0.6360 | ** | break level |
Asterisk denotes strength of level
14:25 BST - Little change, as mixed intraday studies keep near-term sentiment cautious and prompt consolidation around 0.6550. Daily readings are turning down and overbought weekly stochastics are flattening, suggesting room for a break down to congestion support at 0.6500. However, the rising weekly Tension Indicator and positive longer-term charts are expected to limit any initial tests in fresh consolidation. A break, if seen, will add weight to sentiment and open up congestion around 0.6450. Meanwhile, resistance remains at congestion around 0.6600. A close above here is needed, not yet seen, to turn sentiment positive and extend April gains towards the 0.6688 monthly high of 7 November and the 0.6700 Fibonacci retracement.