After a Remarkable Advance AUDUSD Edged Lower Beneath 0.6938 Level Amid Worsening US-China Relations

AUDUSD  Price Analysis – June 4

The AUDUSD pair stayed on the guard during Thursday’s European session and was last seen trading close to the lower range of its daily trading, just below the 0.6938 marks. Fears over a yet more confrontation in US-China conflicts have kept a shield on the latest positivity about the coronavirus pandemic’s global economic recovery.

Key Levels
Resistance Levels: 0.7205, 0.7031, 0.6938
Support Levels: 0.6770, 0.6402, 0.5906

AUDUSD Long term Trend: Bullish
The RSI, as seen on the daily, is in the overbought zone and suggests a possible short-term downside correction. In the situation the pair moves higher, the bulls are likely to beat the prior height of 0.7031 level, recorded as a barrier last year-end. A higher break may take a breath within level 0.7205.

Conversely, a downward shift may further push the market to the 0.6800 handles before the actual 0.6777 support level, so sellers can put more emphasis on overbought RSI conditions to revisit the late-January lows close to 6684 levels.

AUDUSD Short term Trend: Bullish
Overall, after the significant rebound off the 171⁄2-year low level of 0.5506 on March 19 as seen on the daily, AUDUSD has been in a bullish mood. The short-term bias is positive and any rising push beyond yesterday’s high may first change the bearish mode to be neutral in the medium to long term.

The exchange rate is currently trading at 0.6878 level near a support level established by a horizontal line. If the level of support continues to hold, bullish traders within this session may try to force the price higher. Nevertheless, if the currency exchange rate breaches the horizontal support line, this week a fall toward the level of 0.6770 may be anticipated.

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