Chart AUD/USD Update: Leaning lower
Cautious trade has given way to a break below 0.6900, with prices currently balanced in range extension beneath here
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7100 | congestion | S1 | 0.6850 | ** | 50% ret of Nov-May rally | ||
| R3 | 0.7050 | * | congestion | S2 | 0.6833 | ** | 30 Mar (m) low | |
| R2 | 0.7000 | * | congestion | S3 | 0.6750 | ** | 61.8% ret of Nov-May rally | |
| R1 | 0.6900 | * | congestion | S4 | 0.6700 | * | break level |
Asterisk denotes strength of level
14:35 BST - Cautious trade has given way to a break below 0.6900, with prices currently balanced in range extension beneath here. Flat oversold daily stochastics highlight room for further consolidation, before the bearish daily Tension Indicator and deteriorating weekly charts prompt further losses. In the coming sessions, May losses are expected to extend to support at the 0.6850 Fibonacci retracement. However, a close below the 0.6833 monthly low of 30 March would turn sentiment negative and open up the 0.6750 retracement. Meanwhile, a close back above congestion resistance at 0.6900 would help to stabilise price action and prompt consolidation beneath congestion around 0.7000.