Losses Consolidated by AUD/USD Over 0.6900 Before the Fed Meeting
Just recently, the AUD/USD pair experienced a decline. However, following the decline, the trading price of the pair has managed to consolidate.
AUD/USD Consolidated Over 0.6900
Following the decline, the pair started moving towards recovery in the Asian market session. Finally, the pair was able to climb all the way up to and over 0.6900. The aggressive RBA tightening bets for Australia’s second quarter inflation data were tempered.
According to the analysts, the majority of the investors are taking caution in the pair, as they want to see what unravels following the meeting of Joe Biden and Xi Jinping. Another reason why the investors are not hasting investments in favor of the pair is the decisions pending from the Federal Reserve’s end.
Daily Performance Chart of AUD/USD
In the daily performance chart of the pair, it can be witnessed that the recent move recorded for the pair was corrective. The data suggests that the pair will not be making a stronger move in near future.
For now, the pair is standing over 100 pips, which indicates 20-SMA, a firm bearish level. If the value of the pair ends up falling below a particular level, the trading value of the pair may start moving in the downward direction at a faster rate.
Technical Indicators for AUD/USD
When it comes to referring to the technical indicators for the pair, they point towards a strong bearish trend. They suggest that the value of the pair is highly likely to move in the negative direction than move in the positive.
The data suggests that while the momentum is on its way to crossing line 100, the relative strength index for the pair is hovering around 40.
4-Hour Chart for AUD/USD
The 4-hour chart shows that the pair is mainly moving in the bearish zone and it has only shown a few pips that are moving above the 20-period SMA.
The data shows that the pair is currently moving in a direction that is below the neutral levels. It was on Friday when the trading price of the pair experienced the bottom price. On a particular day, the pair dipped all the way down to 0.6763, which is the 2-year low that the pair recorded.
The performance chart of the pair suggests that if the Reserve Bank of Australia (RBA) shares disappointing news in the upcoming days surrounding the country’s economy, then the pair may move downwards.
Support Levels for AUD/USD
The data shows that the first support level for the pair is 0.6850, followed by the second support level, which is 0.6810. The third support level for the pair is 0.6765.
Resistance Levels for AUD/USD
The report suggests that the resistance levels for the pair are at 0.6910, 0.6955, and 0.6990 respectively.