Chart AUD/USD Update: Under pressure
Choppy trade around 0.7000 has given way to anticipated losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7140 | ** | 21 Sep (w) high | S1 | 0.6950 | * | break level | |
| R3 | 0.7100 | ** | congestion | S2 | 0.6900 | ** | congestion | |
| R2 | 0.7050 | * | congestion | S3 | 0.6865 | ** | 30 Jun (m) low | |
| R1 | 0.7000 | * | congestion | S4 | 0.6850 | ** | 50% ret of Nov-May rally |
Asterisk denotes strength of level
14:15 GMT - Choppy trade around 0.7000 has given way to anticipated losses, with prices reaching 0.6960 before bouncing into choppy trade around 0.6980. Daily stochastics continue to fall and the daily Tension Indicator has turned down, highlighting a deterioration in sentiment and room for further losses in the coming sessions. A break below 0.6980 will open up 0.6950. But unwinding oversold weekly stochastics could limit any initial tests in fresh consolidation, before the bearish weekly Tension Indicator and negative longer-term charts prompt deeper losses.
Meanwhile, a close back above 0.7000 would help to stabilise price action and prompt consolidation beneath further congestion around 0.7050.