Technical Analysis – AUDUSD bulls step in but caution still warranted
October 6, 2023 8:28 am
AUDUSD pivots higher near familiar support
Short-term risk remains skewed to the downside
Next resistance expected to emerge near 20-SMA
AUDUSD found shelter near the descending line drawn from December 2022 for the fifth time, avoiding any declines below the 0.6300 round level.
The RSI and the stochastic oscillators have deviated above their oversold levels, backing the recent rise in the price. Still, they haven’t exited the bearish area, keeping the focus on the 0.6395-0.6455 important resistance zone, where the 20- and 50-day simple moving averages (SMAs) as well as two constraining lines could reject any potential increases. Then the bulls will need to violate the downward path above 0.6520 and run beyond 0.6570 in order to meet the 200-day SMA at 0.6625.
Should the downtrend extend below the 0.6300 round-level and the critical support line, the price could initially seek protection near the 0.6200 mark and then within the 0.6100-0.6120 region last seen in April 2020.
Overall, AUDUSD has re-activated its bearish trajectory from mid-July earlier this week and a sustainable recovery above 0.6520 is now needed to eliminate negative risks in the market.
AUDUSD pivots higher near familiar support
Short-term risk remains skewed to the downside
Next resistance expected to emerge near 20-SMA
AUDUSD found shelter near the descending line drawn from December 2022 for the fifth time, avoiding any declines below the 0.6300 round level.
The RSI and the stochastic oscillators have deviated above their oversold levels, backing the recent rise in the price. Still, they haven’t exited the bearish area, keeping the focus on the 0.6395-0.6455 important resistance zone, where the 20- and 50-day simple moving averages (SMAs) as well as two constraining lines could reject any potential increases. Then the bulls will need to violate the downward path above 0.6520 and run beyond 0.6570 in order to meet the 200-day SMA at 0.6625.
Should the downtrend extend below the 0.6300 round-level and the critical support line, the price could initially seek protection near the 0.6200 mark and then within the 0.6100-0.6120 region last seen in April 2020.
Overall, AUDUSD has re-activated its bearish trajectory from mid-July earlier this week and a sustainable recovery above 0.6520 is now needed to eliminate negative risks in the market.
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