AUDUSD Hit Back Beneath Moving Average 5 as Selling Pressure Sets In

AUDUSD Hit Back Beneath Moving Average 5 as Selling Pressure Sets In

AUDUSD Price Analysis – January 16

AUDUSD has dropped back from the corrective highs of the level at 0.6933 while losing the 0.69 handles today, registering a low on the level at 0.6887 in recent trade, piercing the moving average 5.

Key Levels
Resistance Levels: 0.7085, 0.7031, 0.6933
Support Levels: 0.6850, 0.6754, 0.6670

AUDUSD Long term Trend: Bullish

In the larger structure, with the level at 0.7085 resistance intact, there is no evident confirmation of trend reversal yet. That is, downtrend from the level at 0.8135 (high) is quite anticipated to resume to 0.6008 levels (low).

However, a decisive break of 0.7085 level may confirm long term bottoming and bring stronger rally back to the further upper horizontal level (now at 0.7487).

AUDUSD Short term Trend: Ranging

The intraday bias in AUDUSD stays neutral as the consolidation from the level of 0.6850 is temporarily in process. The forecast has not changed: a rebound from the level at 0.6670 may end in three successive horizontal lines to 0.7031 level.

On the other hand, a break of the level at 0.6850 may be aimed at supporting 0.6754 level on the daily to confirm this bearish scenario. However, a break of the level at 0.6933 may alter the focus to the resistance of 0.7031 level.

Instrument: AUDUSD
Order: Buy
Entry price: 0.6897
Stop: 0.6850
Target: 0.7013

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.