The market reacted to the results of today’s RBA meeting with a sharp strengthening of the Australian dollar and a surge of the AUD/USD pair upward, breaking through the round resistance level of 0.6700 and reaching an intraday high of 0.6716. However, the price has not yet managed to overcome the strong resistance level of 0.6710 (50 EMA on the daily chart), and at the beginning of today’s European trading session, AUD/USD has slightly retreated from today’s high.
The first signal for resuming short positions could be the breakdown of the 0.6691 support level (200 EMA on the 4-hour chart) with a target at the 0.6651 support level (200 EMA on the 1-hour chart). The nearest target of this breakdown will be the lower boundary of the downward channel on the daily chart and the 0.6570 mark.
In general, below the key resistance levels 0.6790 (200 EMA on the daily chart), 0.6815 (50 EMA on the weekly chart), 0.7040 (144 EMA on the weekly chart, and 38.2% Fibonacci correction in the wave decline from the level of 0.9500 in July 2014 to multi-year lows and the level of 0.5500 reached in March 2020), 0.7100 (200 EMA on the weekly chart), AUD/USD remains in the long-term bear market zone.
In an alternative scenario, a confirmed breakout of the local resistance level of 0.6710 could be a signal for buyers of the pair and provoke further growth of AUD/USD towards resistance levels 0.6760 (144 EMA and the upper line of the downward channel on the daily chart), 0.6790 (200 EMA on the daily chart). Their breakout will bring the pair into the medium-term bull market zone.
The market reacted to the results of today’s RBA meeting with a sharp strengthening of the Australian dollar and a surge of the AUD/USD pair upward, breaking through the round resistance level of 0.6700 and reaching an intraday high of 0.6716. However, the price has not yet managed to overcome the strong resistance level of 0.6710 (50 EMA on the daily chart), and at the beginning of today’s European trading session, AUD/USD has slightly retreated from today’s high.
The first signal for resuming short positions could be the breakdown of the 0.6691 support level (200 EMA on the 4-hour chart) with a target at the 0.6651 support level (200 EMA on the 1-hour chart). The nearest target of this breakdown will be the lower boundary of the downward channel on the daily chart and the 0.6570 mark.
In general, below the key resistance levels 0.6790 (200 EMA on the daily chart), 0.6815 (50 EMA on the weekly chart), 0.7040 (144 EMA on the weekly chart, and 38.2% Fibonacci correction in the wave decline from the level of 0.9500 in July 2014 to multi-year lows and the level of 0.5500 reached in March 2020), 0.7100 (200 EMA on the weekly chart), AUD/USD remains in the long-term bear market zone.
In an alternative scenario, a confirmed breakout of the local resistance level of 0.6710 could be a signal for buyers of the pair and provoke further growth of AUD/USD towards resistance levels 0.6760 (144 EMA and the upper line of the downward channel on the daily chart), 0.6790 (200 EMA on the daily chart). Their breakout will bring the pair into the medium-term bull market zone.
Support levels: 0.6691, 0.6651, 0.6635, 0.6600, 0.6570, 0.6500, 0.6455, 0.6390, 0.6285, 0.6200, 0.6170
Resistance levels: 0.6700, 0.6710, 0.6760, 0.6790, 0.6800, 0.6815, 0.6900, 0.6920, 0.7000, 0.7040, 0.7100
The material has been provided by InstaForex Company – www.instaforex.com
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