AUD/USD:- Once Again Reaches Critical Resistance Level
AUD/USD:- You would be forgiven if you have taken AUD/USD off your watchlist in recent times as price continuously remains trapped within a 130 pip range. For the 6th consecutive week, we can see that price has struggled to break the lower region of 0.7400 and on a higher time frame has consistently left wicks to the downside suggesting that the selling pressure is exhausting its self. On the other hand, we have struggled to maintain any buying pressure as the region of 0.7440 has caused the pair to fall on 5 separate occasions and the weekly MA remains a glaring reminder of how steeply price has fallen in recent months.
As we reach the current resistance level once more, investors will be intrigued by the strength of the region as the Retail Trader and Technical Analysts will look for a break and closure through this zone or a sustained rejection of the price point. Either set up provides us with clarity and confidence with both directions offering significant pips to be gained. My bias leans slightly more in favour of a bullish break due to the sustained period of wicks to the downside causing the price to consolidate for 6 weeks. If a strong daily candle can break and close past the 0.7440 level there may be a rapid burst back towards the 0.7550 price point. Alternatively, a Rejection of this level could help guide us back to the current supportive region of 0.7330