Chart AUD/USD Update: Limited tests higher
Anticipated losses have bounced from congestion support at 0.6900
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7100 | ** | congestion | S1 | 0.6900 | ** | congestion | |
| R3 | 0.7050 | * | congestion | S2 | 0.6865 | ** | 30 Jun (m) low | |
| R2 | 0.7000 | * | congestion | S3 | 0.6850 | ** | 50% ret of Nov-May rally | |
| R1 | 0.6950 | * | break level | S4 | 0.6833 | ** | 30-31 Mar (m) low |
Asterisk denotes strength of level
09:00 BST - Anticipated losses have bounced from congestion support at 0.6900, as oversold intraday studies unwind, with prices approaching resistance at 0.6950. Oversold daily stochastics are also turning higher, suggesting room for a test above here. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed selling interest beneath congestion around 0.7000.
Following cautious/corrective trade, fresh losses are looked for. A later break below 0.6900 will add weight to sentiment and initially open up the 0.6865 monthly low of 30 June. Still lower is the 0.6850 Fibonacci retracement, where short-covering could appear. A close beneath here will confirm continuation of broad May losses.