AUDUSD Retains Upside Risk After Staging Modest Rebound Past 0.6569 Level

AUDUSD Price Analysis – May 21

The AUDUSD pair climbed to its highest level in the previous session since early March at 0.6616, before entering a consolidation period after staging a moderate rebound past 0.6569 level. The pair witnessed some lengthy-unwinding force on Thursday and appears to have broken two consecutive days of winning run in the US dollar market in the middle of a strong rebound.

Key levels
Resistance Levels: 0.7031, 0.6878, 0.6684
Support Levels: 0.6515, 0.6402, 0.6265

AUDUSD Long term Trend: Ranging
AUDUSD keeps giving bullish indications in the daily period as the market further strengthened its two-month-old uptrend after climbing to 0.6400 level and posting one other higher to 0.6616 as of the previous session.

We would still anticipate growth to be restricted by the main resistance of 0.6684 level, at least on the initial attempt. On the downside, a breach of 0.6402 support level may imply balancing in the near term and transform bias to the downside for 0.6265 support level.

AUDUSD Short term Trend: Bullish
In the short term, it is impossible to rule out some vulnerability as the price is floating around the moving average of 5 and 13 as well as the RSI appears to be losing steam towards its 50 neutral marks. That being said, any retracement may not be a major concern unless the market closes beneath the 0.6400 marks and continues to worsen within the upward trendline support.

If the currency exchange rate trends toward the ascending channel, however, a decline to the level of 0.6515 could be highly anticipated. If another upward trend continues, over the next few sessions, the AUDUSD pair may begin to surge.

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