AUDUSD is likely to fall then rise again
The AUDUSD witnessed a remarkable rebound this week, surging to the 0.6791 level on Thursday, marking the highest level since late July.
After a failed attempt at the beginning of the month, the bulls finally broke above the resistance trendline dating back to April 2022, adding to the market's optimistic sentiment that the upward reversal from the year's low point in October may continue. The RSI and the stochastic oscillator align with this view, as they fluctuate around the 70 and 80 levels, respectively, without confirming overbought conditions.
The 0.6791 level, which has restricted both upward and downward trends for over a year, is currently under scrutiny. If it gives way, the upward momentum could accelerate toward the 0.6800 level and then rise to the double-top formation at 0.6894 from June to July 2023. If bulls make further progress, the next resistance may emerge around the 0.6980 area.
Alternatively, a downward correction may initially pause between the nearby support at 0.6655 and the breached resistance trendline. If this bottom holds, the asset might seek shelter near the exponential moving averages, currently situated between 0.6520 and 0.6600. Subsequent further declines could find stability around the 2020 ascending trendline at 0.6470 or lower near 0.6400. Afterward, attention might shift to the crucial 0.6269-0.6300 region.
Overall, the AUDUSD maintains a bullish bias. While the recent strong rebound may slow down, bulls could focus on the 0.6830 area as the potential endpoint of the upward impulse waves in the coming trading days.
In terms of trading strategy, buying the dips is recommended.
After a failed attempt at the beginning of the month, the bulls finally broke above the resistance trendline dating back to April 2022, adding to the market's optimistic sentiment that the upward reversal from the year's low point in October may continue. The RSI and the stochastic oscillator align with this view, as they fluctuate around the 70 and 80 levels, respectively, without confirming overbought conditions.
The 0.6791 level, which has restricted both upward and downward trends for over a year, is currently under scrutiny. If it gives way, the upward momentum could accelerate toward the 0.6800 level and then rise to the double-top formation at 0.6894 from June to July 2023. If bulls make further progress, the next resistance may emerge around the 0.6980 area.
Alternatively, a downward correction may initially pause between the nearby support at 0.6655 and the breached resistance trendline. If this bottom holds, the asset might seek shelter near the exponential moving averages, currently situated between 0.6520 and 0.6600. Subsequent further declines could find stability around the 2020 ascending trendline at 0.6470 or lower near 0.6400. Afterward, attention might shift to the crucial 0.6269-0.6300 region.
Overall, the AUDUSD maintains a bullish bias. While the recent strong rebound may slow down, bulls could focus on the 0.6830 area as the potential endpoint of the upward impulse waves in the coming trading days.
In terms of trading strategy, buying the dips is recommended.
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