AUDUSD Trades Beneath 0.7800 Level on Solid Dollar Rebound

AUDUSD Trades Beneath 0.7800 Level on Solid Dollar Rebound

AUDUSD Price Analysis – January 7

The AUDUSD pair edged lower through the European session into the American session and registered daily lows around the 0.7725 zones in the last hour. The pullback was exclusively supported by a solid US dollar rebound and dragged the pair further below mid-0.7700s.

Key Levels
Resistance Levels: 0.8136, 0.8000,0.7800
Support Levels: 0.7635, 0.7571, 0.7414

AUDUSD Long term Trend: Bullish
Technical indicators are almost flashing reversal conditions on the daily chart as the RSI is turning downwards. In the larger sense, meanwhile, the recovery from the medium-term bottom of 0.5506 level is seen as reversing the entire long-term downtrend from the high level of 1.1079.

There is no validation that it has been finished. A sustained move beyond should assist bulls to make a fresh attempt to reclaim the 0.7800 marks. That being said, continuous trading beneath the moving averages 5 (now at level 0.7210) may improve the chances that it’ll be completed and shift attention back to the low level 0.5506.

AUDUSD Short term Trend: Bullish
The decrease in AUDUSD is now decreasing to as low as 0.7725 level, and intraday bias has altered neutral. The recent decline is seen as a complete growth correction from 0.5506 to 0.7800 levels. As such, AUDUSD appears likely to test the lower levels of horizontal support, presently below the level of 0.7700.

However, in the event of a rebound, the trend may remain bullish. The recent strength of the dollar as a whole strengthens the “pullback” scenario of the pair. In the short term, the risk remains biased upward on the 4-hour chart despite reversals. Another step north should be expected on a break above 0.7800, the nearest resistance level.

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Author : Azeez Mustapha


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