AUDUSD Stays Beneath Heavy Selling Pressure at 0.7635 for the 2nd Day in a Row

AUDUSD Stays Beneath Heavy Selling Pressure at 0.7635 for the 2nd Day in a Row

AUDUSD Price Analysis – January 28

AUDUSD added to its intraday losses and fell to a weekly low below 0.7600 for the 2nd day in a row at the start of the European session. Heavy selling pressure around the AUDUSD pair intensified and knocked rates down to their lowest level in two weeks around 0.7591. A broadly bid US dollar and virus concerns weigh heavily on the higher-yielding Aussie.

Key Levels
Resistance Levels: 0.8136, 0.8000,0.7800
Support Levels: 0.7557, 0.7461, 0.7220
AUDUSD Long term Trend: Ranging
The AUDUSD trend is about turning bearish which is further reinforced by the fact that technical indicators on the daily chart have just started driving into the negative territory. Some follow-through selling below moving average 5 and 13, around the 0.7635 regions, will reaffirm the bearish bias and turn the AUDUSD pair vulnerable to slide further.

On the flip side, any attempted recovery runs the risk of fizzling out rather quickly near the moving average 5 support breakpoint at 0.7680. This, in turn, should now act as a strong barrier, which if cleared decisively might trigger some short-covering move and push the AUDUSD pair back towards the 0.7700 round number.
AUDUSD Short term Trend: Ranging
On the 4-hour time frame, the momentum indicators, though, are currently encouraging an ongoing sell-off in the very short-term. The RSI is falling below the oversold threshold of 30, while the 4-hour moving averages 5 and 13 are falling and above price while still in the positive region.

However, a closing price above the high price of 0.7800 in subsequent sessions could boost buying interest and confirm additional gains towards the 0.7920 barriers, being high from March 2018. Higher still, the 0.8130 barriers could be the next target which is the resistance identified in January 2018.

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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.