AUDUSD Encounters a Setback to Its Upward Recovery

AUDUSD Price Analysis – January 6

AUDUSD encounters a setback as it strives to regain lost ground. Since dropping to the 0.69980 significant level, the price has immediately rebounded, pushing through the key levels with much effort. However, AUDUSD now encounters a setback at the 0.72660 resistance with depleted strength. Therefore, liquidity has dropped even beyond the next significant level. The price still has a chance if it recovers from the setback early, else it could all go south for the market.

AUDUSD Significant Levels

Resistance Levels: 0.73250, 0.72660
Support Levels: 0.71780, 0.70960

AUDUSD Long Term Trend: Bullish

From late last year, AUDUSD has been pushing up a trendline, though with downward forces intercepting at intervals, the market remains on the rise. However, on the 19th of November, the market’s rise broke down, and this led to a serious dip in price. AUDUSD plummeted below the uptrend line and broke several key levels to get to the 0.69980 support level. The market then restarted its climb from there.

A three-white-soldier candlestick pattern was therefore employed to restart the market’s ascension. The price got to 0.71780 and entered into consolidation with 0.70960 as the support level. Thereafter, the price breaks upward and encounters another resistance at 0.72660. Another ranging phase commenced, but AUDUSD is weaker at this level and dropped downward. The RSI (Relative Strength Index) shows a drop in market strength as its line also drops below the 50 mark.

AUDUSD Short Term Trend: Bearish

In dropping below the 0.72660 resistance level, the market has dropped below the MA period 100 on the 4-hours chart. Moreso, the RSI indicator in the same time frame is very close to the oversold bolder. This shows the extent to which the upward impetus of the market has dropped, but it also signifies that we might be expecting an upturn again in price. If this happens, the market will likely recover and charge through the 0.72660 resistance to get to 0.73250.

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