The weak macro statistics received during the previous week, which ends today, had an extremely negative impact on the U.S. dollar, causing a sharp decline across the currency market.
In particular, the AUD/USD pair rose by 3.1% in just the past two days (Wednesday and Thursday), reaching again the previous month’s high of 0.6894, fully recovering from the drop in the second half of last month.
The Australian dollar (AUD) also experienced a sharp decline earlier this month following the unexpected decision of the RBA to leave the interest rate at the current level of 4.10%. Immediately after the RBA’s decision was announced, the AUD/USD pair lost nearly 50 pips, dropping to an intraday low of 0.6642.
As of writing, AUD/USD was near the 0.6870 level, declining from the local 4-week high of 0.6894 reached last Thursday. A breakout of this level could trigger further growth of the pair towards key resistance levels at 0.6975 (144 EMA on the weekly chart), 0.7040 (50 EMA on the monthly chart and 38.2% Fibonacci retracement level from the downward wave from 0.9500 to 0.5510), and 0.7060 (200 EMA on the weekly chart), which separate the long-term bearish market from the bullish one.
The “fastest” signal for implementing an alternative bearish scenario would be a break below the 0.6861 level (today’s low) and the short-term support level at 0.6833 (200 EMA on the 15-minute chart).
A break of key support levels at 0.6750 (200 EMA on the daily chart) and 0.6725 (144 EMA on the daily chart) would bring the AUD/USD back into the medium-term and long-term bearish market zone, directing the pair inside the downward channel on the weekly chart towards its lower boundary, which is currently near the local lows (since April 2020) at 0.6285 and 0.6200.
The weak macro statistics received during the previous week, which ends today, had an extremely negative impact on the U.S. dollar, causing a sharp decline across the currency market.
In particular, the AUD/USD pair rose by 3.1% in just the past two days (Wednesday and Thursday), reaching again the previous month’s high of 0.6894, fully recovering from the drop in the second half of last month.
The Australian dollar (AUD) also experienced a sharp decline earlier this month following the unexpected decision of the RBA to leave the interest rate at the current level of 4.10%. Immediately after the RBA’s decision was announced, the AUD/USD pair lost nearly 50 pips, dropping to an intraday low of 0.6642.
As of writing, AUD/USD was near the 0.6870 level, declining from the local 4-week high of 0.6894 reached last Thursday. A breakout of this level could trigger further growth of the pair towards key resistance levels at 0.6975 (144 EMA on the weekly chart), 0.7040 (50 EMA on the monthly chart and 38.2% Fibonacci retracement level from the downward wave from 0.9500 to 0.5510), and 0.7060 (200 EMA on the weekly chart), which separate the long-term bearish market from the bullish one.
The “fastest” signal for implementing an alternative bearish scenario would be a break below the 0.6861 level (today’s low) and the short-term support level at 0.6833 (200 EMA on the 15-minute chart).
A break of key support levels at 0.6750 (200 EMA on the daily chart) and 0.6725 (144 EMA on the daily chart) would bring the AUD/USD back into the medium-term and long-term bearish market zone, directing the pair inside the downward channel on the weekly chart towards its lower boundary, which is currently near the local lows (since April 2020) at 0.6285 and 0.6200.
Support levels: 0.6861, 0.6833, 0.6800, 0.6780, 0.6750, 0.6725, 0.6705, 0.6642, 0.6600, 0.6565, 0.6500, 0.6455, 0.6390, 0.6285, 0.6200, 0.6170
Resistance levels: 0.6900, 0.6975, 0.7000, 0.7040, 0.7060
The material has been provided by InstaForex Company – www.instaforex.com
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