Published: 2024-05-02T13:43:11.000Z
Chart AUD/USD Update: Sharp bunce giving way to consolidation
Senior Technical Strategist
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The bounce from the 0.6465 low of 1 May has broken back above 0.6500
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 0.6668 | ** | 8 Mar (m) high | S1 | 0.6500 | * | congestion | |
R3 | 0.6650 | * | congestion | S2 | 0.6450 | congestion | ||
R2 | 0.6600 | * | congestion | S3 | 0.6400/10 | ** | congestion; 76.4% ret of Oct-Dec rally | |
R1 | 0.6560 | * | break level | S4 | 0.6362 | ** | 19 Apr YTD low | |
Asterisk denotes strength of level
14:30 BST - The bounce from the 0.6465 low of 1 May has broken back above 0.6500, with prices currently balanced in cautious trade around 0.6530. A test of resistance at 0.6560 is possible, as the daily Tension Indicator continues to rise, but a tick lower in daily stochastics suggests any immediate tests could be limited in fresh consolidation. In the coming sessions, a break back below congestion support at 0.6500 towards 0.6450 is possible. However, rising weekly charts are expected to limit any deeper losses in buying interest above strong support at congestion around 0.6400 and the 0.6410 Fibonacci retracement.