Chart AUD/USD Update: Room for lower
Minor consolidation has given way to anticipated selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7200 | ** | break level, 61.8% ret | S1 | 0.6900 | * | congestion | |
| R3 | 0.7100 | congestion | S2 | 0.6850 | ** | 50% ret of Nov-May rally | ||
| R2 | 0.7050 | * | congestion | S3 | 0.6833 | ** | 30 Mar (m) low | |
| R1 | 0.7000 | * | congestion | S4 | 0.6750 | ** | 61.8% ret of Nov-May rally |
Asterisk denotes strength of level
14:40 BST - Minor consolidation has given way to anticipated selling interest, with prices currently pressuring congestion support at 0.6900. Daily readings are bearish and broader weekly charts are also under pressure, highlighting room for further losses in the coming sessions. A break beneath here will extend May losses towards stronger support within the 0.6833 monthly low of 30 March and the 0.6850 Fibonacci retracement. However, already oversold daily stochastics could limit any initial tests in short-covering/consolidation. Meanwhile, a close back above congestion resistance at 0.7000, if seen, would help to stabilise sentiment and prompt fresh consolidation beneath further congestion around 0.7050.