Technical Analysis – AUDUSD recovers after finding support at 0.6594
July 4, 2023 3:26 pm
AUDUSD has been in a recovery mode since June 28, when it hit support at 0.6594, slightly above 0.6575, which is the lower boundary of the sideways range that’s been containing the price action since February 24. As long as the pair is trading within that range, the near-term outlook remains neutral, but the fact that the current recovery started from the lower bound suggests that some further recovery within the range may be possible.
Both the RSI and the MACD corroborate that view. The RSI rebounded after hitting its 50 line as support, while the MACD is floating above both its zero and trigger lines, pointing up.
If the bulls are willing to stay in the driver’s seat for a while longer, they may soon challenge the 0.6720 barrier or the 0.6740 zone, marked by the high of June 27 and the inside swing low of June 21 respectively. If they don’t stop there, they may decide to extend their march towards the upper end of the pre-mentioned range at around 0.6795.
On the downside, a dip below 0.6575 could signify that the bears have gained the upper hand in this trading battle and may allow declines towards the 0.6490 area, which provided strong support between May 26 and June 1. A break lower could extend the decline towards the low of November 10, at around 0.6385.
To sum up, AUDUSD is in a recovery mode within a bigger sideways range. Therefore, although the near-term picture remains flat, given that the rebound took place near the lower bound of the range, some further recovery cannot be ruled out.
AUDUSD has been in a recovery mode since June 28, when it hit support at 0.6594, slightly above 0.6575, which is the lower boundary of the sideways range that’s been containing the price action since February 24. As long as the pair is trading within that range, the near-term outlook remains neutral, but the fact that the current recovery started from the lower bound suggests that some further recovery within the range may be possible.
Both the RSI and the MACD corroborate that view. The RSI rebounded after hitting its 50 line as support, while the MACD is floating above both its zero and trigger lines, pointing up.
If the bulls are willing to stay in the driver’s seat for a while longer, they may soon challenge the 0.6720 barrier or the 0.6740 zone, marked by the high of June 27 and the inside swing low of June 21 respectively. If they don’t stop there, they may decide to extend their march towards the upper end of the pre-mentioned range at around 0.6795.
On the downside, a dip below 0.6575 could signify that the bears have gained the upper hand in this trading battle and may allow declines towards the 0.6490 area, which provided strong support between May 26 and June 1. A break lower could extend the decline towards the low of November 10, at around 0.6385.
To sum up, AUDUSD is in a recovery mode within a bigger sideways range. Therefore, although the near-term picture remains flat, given that the rebound took place near the lower bound of the range, some further recovery cannot be ruled out.
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