AUDUSD Technical Analysis / Forex Technical Analysis

AUDUSD Technical Analysis – 2-August-2024

FxNews—The American dollar has been losing ground against the Australian dollar since July 11, when the AUD/USD exchange rate was 0.679. As of writing, the currency pair experienced a weak uptick momentum near the May 1 low at about $0.646.

The robust selling pressure drove the stochastic oscillator and the relative strength index indicator into oversold territory in the daily chart. This development in the technical indicators suggests the market could consolidate and target the upper resistance levels.

We zoomed into the 4-hour chart to closely examine the price action and the technical indicators. As demonstrated in the image below, the price is below the 50 and 100-period simple moving average, adding credit to the bear market.

AUDUSD Technical Analysis – 2-August-2024

But the awesome oscillator signals divergence, which justifies the current sideway trading in the AUD/USD pair. Meanwhile, the relative strength index moves alongside the median line, depicting 44 in the value, indicating a low momentum market.

Moreover, the stochastic oscillator is not overbought or oversold in the 4-hour chart. In fact, the % K-like value is 38, and it has been ranging in the middle in the few recent trading sessions. This behavior in the stochastic line suggests that the AUD/USD trend is currently neutral.

AUDUSD Forecast – 2-August-2024

Immediate resistance is at the June 10 low of $0.657. With the AO indicators signaling divergence, there is a potential pullback in the trend, and the American currency might find a chance to erase some of its recent losses against the Aussie dollar.

That said, trading with low momentum is not advisable. Therefore, retail investors should patiently wait and monitor the key resistance levels. Since the primary trend is bearish, we should monitor the $0.657 resistance closely for selling signals such as candlestick patterns, an overbought stochastic, or an overbought RSI.

Furthermore, if the bulls (buyers) cross above the June 10 low at $0.657, the consolidation phase might extend to the 100-period SAM-backed resistance at $0.662.

AUDUSD Support and Resistance Levels – 2-August-2024

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

Support: 0.646 / 0.636
Resistance: 0.657 / 0.662 / 0.679

Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.