On the H4 timeframe, an ascending AUDUSD came to tap the 0.67500 resistance zone several times where a falling wedge can be seen and a slope of higher lows began forming after 21 November. By around 1 December supply became exhausted and gave in to growing demand, where price finally broke through the 0.67500 resistance-turned-support zone. Price was also fuelled by a shift to risk-on market sentiment following hints at a potential easing of Covid restrictions in China, while the Greenback nosedived after dovish FOMC statements further elevating AUDUSD. We expect price to come back and test the new 0.67500 support level where we forecast a subsequent bounce to the next resistance level at 0.68900. Stochastic RSI has dipped into oversold conditions, while an upswing above the Moving Average of the Bollinger band while currently staying within the upper bound indicates a bullish direction.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.