Published: 2024-05-08T13:55:53.000Z
Chart AUD/USD Update: Leaning lower, but downside to remain limited
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Senior Technical Strategist
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Cautious trade beneath congestion resistance at 0.6650 is giving way to a pullback
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 0.6675 | ** | 61.8% ret of Dec-Apr fall | S1 | 0.6560 | * | break level | |
R3 | 0.6668 | ** | 8 Mar (m) high | S2 | 0.6500 | * | congestion | |
R2 | 0.6650 | * | congestion | S3 | 0.6450 | congestion | ||
R1 | 0.6600 | * | congestion | S4 | 0.6400/10 | ** | congestion; 76.4% ret of Oct-Dec rally | |
Asterisk denotes strength of level
14:50 BST - Cautious trade beneath congestion resistance at 0.6650 is giving way to a pullback, with prices currently pressuring 0.6560. Oversold intraday studies could prompt short-term consolidation around here, before unwinding overbought daily stochastics and the flattening positive daily Tension Indicator prompt a break. Subsequent focus will then turn to congestion around 0.6500, where rising weekly charts are expected to prompt fresh buying interest. Meanwhile a close back above 0.6600 will turn sentiment neutral, but a further close above 0.6668/75 is needed to confirm continuation of mid-April gains and open up extension towards the 0.6750 Fibonacci retracement.