Chart AUD/USD Update: Gains to remain limited
The anticipated break below congestion support at 0.7000 has bounced smartly from 0.6975/80
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 0.7185~ | * | 11 Mar YTD high | S1 | 0.7000 | * | congestion | |
| R3 | 0.7155~ | ** | Feb 2023 (y) high | S2 | 0.6945 | ** | 3 Mar (w) low | |
| R2 | 0.7100 | break level | S3 | 0.6900 | ** | break level | ||
| R1 | 0.7050 | * | congestion | S4 | 0.6800 | * | break level |
Asterisk denotes strength of level
14:50 GMT - The anticipated break below congestion support at 0.7000 has bounced smartly from 0.6975/80, as oversold intraday studies unwind, with prices currently trading around congestion resistance at 0.7050. Beyond here is the 0.7100 break level. But negative daily and weekly readings should limit any extension towards here in renewed selling interest/consolidation. In the coming sessions, cautious trade is expected to give way to fresh losses. Support is at 0.7000. But a further close below the 0.6945 weekly low of 3 March is needed to turn sentiment negative and confirm a deeper correction, as focus then turns to 0.6900.