AUD/USD continues to trade in a bear market. The recently published macro statistics from Australia turned out to be weak and could not support the Australian currency, and from the published minutes of the March meeting of the Reserve Bank of Australia, it follows that members of the central bank’s management “agreed to reconsider the case for a pause at the following meeting, recognizing that pausing would allow additional time to reassess the outlook for the economy.”
In addition, the prevailing market and investors uncertainty weigh on the quotes of commodity currencies, particularly the Australian dollar.
Nevertheless, over the past few weeks, the pair recovered from a strong decline at the beginning of the month, currently approaching the closing levels of February, above the 0.6700 mark. As of writing, AUD/USD was trading near the 0.6720 mark, close to the strong short-term resistance level 0.6725 (200 EMA on the 4-hour chart).
Its breakdown and the breakdown of the resistance level 0.6745 (50 EMA on the weekly chart) may provoke further growth of AUD/USD towards the key resistance level 0.6815 (200 EMA on the daily chart). But the breakdown of the resistance level 0.6840 (50 EMA on the weekly chart) can open the way towards the key resistance levels 0.7040 (144 EMA on the weekly chart), 0.7100, 0.7110 (200 EMA on the weekly chart), separating the long-term bull market from the bear market.
In an alternative scenario, a rebound will occur from the resistance levels 0.6725, 0.6740, and a breakdown of the support level 0.6685 (200 EMA on the 1-hour chart) will return the pair to a bearish mood. A breakdown of the local support level 0.6570 will finally revive the bearish sentiment on AUD/USD.
AUD/USD continues to trade in a bear market. The recently published macro statistics from Australia turned out to be weak and could not support the Australian currency, and from the published minutes of the March meeting of the Reserve Bank of Australia, it follows that members of the central bank’s management “agreed to reconsider the case for a pause at the following meeting, recognizing that pausing would allow additional time to reassess the outlook for the economy.”
In addition, the prevailing market and investors uncertainty weigh on the quotes of commodity currencies, particularly the Australian dollar.
Nevertheless, over the past few weeks, the pair recovered from a strong decline at the beginning of the month, currently approaching the closing levels of February, above the 0.6700 mark. As of writing, AUD/USD was trading near the 0.6720 mark, close to the strong short-term resistance level 0.6725 (200 EMA on the 4-hour chart).
Its breakdown and the breakdown of the resistance level 0.6745 (50 EMA on the weekly chart) may provoke further growth of AUD/USD towards the key resistance level 0.6815 (200 EMA on the daily chart). But the breakdown of the resistance level 0.6840 (50 EMA on the weekly chart) can open the way towards the key resistance levels 0.7040 (144 EMA on the weekly chart), 0.7100, 0.7110 (200 EMA on the weekly chart), separating the long-term bull market from the bear market.
In an alternative scenario, a rebound will occur from the resistance levels 0.6725, 0.6740, and a breakdown of the support level 0.6685 (200 EMA on the 1-hour chart) will return the pair to a bearish mood. A breakdown of the local support level 0.6570 will finally revive the bearish sentiment on AUD/USD.
Support levels: 0.6685, 0.6635, 0.6600, 0.6570, 0.6500, 0.6455, 0.6390, 0.6285, 0.6200, 0.6170
Resistance levels: 0.6725, 0.6745, 0.6780, 0.6800, 0.6815, 0.6840, 0.6900, 0.6920, 0.7040, 0.7110
The material has been provided by InstaForex Company – www.instaforex.com
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