The AUDUSD declined for the first time this week, losing 0.65 percent and trading at 0.7465 at the time of writing. The pair continued to rise to the highest level since early July, and the 0.7546 area saw an intraday turnaround. A goodish uptick in demand for the US dollar fueled the corrective pullback, which was aided by the risk-off impulse and higher US Treasury bond yields.
Key Levels
Resistance Levels: 0.7645, 0.7600, 0.7550
Support Levels: 0.7450, 0.7350, 0.7220
AUDUSD Long term Trend: Ranging
On the daily chart, technical indicators are practically flashing reversal circumstances as the RSI turns south. Meanwhile, the recovery from the medium-term low of 0.7169 is being seen as reversing the entire long-term downtrend from the high of 0.8007.
There is no proof that it has been completed. Bulls should be able to retake the 0.7500 levels with a sustained move above them. Sustained trading below the moving averages 5 (now at level 0.7458) may boost the chances of it being completed and move focus back to the low level of 0.7169.
AUDUSD Short term Trend: Ranging
The AUDUSD has now dropped to as low as 0.7458, and the intraday bias has shifted to neutral. The recent drop is regarded as a complete growth correction from levels of 0.7169 to 0.7546. As a result, the AUDUSD is likely to test the lower levels of horizontal support, which are now below 0.7450.
In the case of a rebound, though, the trend may continue to be optimistic. The recent rise of the dollar, in general, supports the pair’s “pullback” scenario. Despite reversals, the risk on the 4-hour chart remains weighted upward in the short term. A break over 0.7500, the nearest resistance level, should signal a further move north.
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