AUDUSD Technical Analysis – 31-May-2024

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FxNews—The Australian dollar trades sideways against the U.S. Dollar between the $0.659 key support and the $0.667 key resistance. The AUD/USD 4-hour chart below shows that the bullish wave began from the key resistance level eased upon touching the descending trendline at about $0.667.

AUDUSD Technical Analysis - 31-May-2024

AUDUSD Technical Analysis – 31-May-2024

AUDUSD Technical Analysis – 31-May-2024

As of writing, the currency pair trades approximately around $0.664, slightly above the %50 Fibonacci level. Currently, the bears are testing the immediate support, the SMA 50, at $0.663. This level is crucial in our technical analysis, which will be explained later in this article.

AUD/USD Technical Indicators Explain 4-Hour Chart

AUD/USD Technical Indicators Explain 4-Hour Chart

The technical indicators in the AUD/USD 4-hour chart suggest the bullish trend is losing momentum.

  • The awesome oscillator bars are green, above zero, depicting 0.0004 in the description. This growth in the AO bars means the uptrend is gradually gaining strength
  • The relative strength index has returned to the 50 level from above and currently recording a value of 51 in the description. This means the trend is not either overbought or oversold and losing momentum.
  • The stochastic oscillator value is 74 and rising, indicating that the bull market has momentum but might become overbought soon.

AUD/USD Price Forecast – 31-May-2024

AUD/USD Price Forecast - 31-May-2024

AUD/USD Price Forecast – 31-May-2024

From a technical perspective, the pair trades sideways in a wide range. The key resistance level is at $0.667, and the AUD/USD is declining. Due to the bullish signals we received from the technical indicators in the 4-hour chart, we do not recommend joining the bear market.

Therefore, we advise waiting for the currency pair to cross above the key resistance level at $0.667. If this scenario unfolds, the buyers’ path to the May 16 high at $0.671 will be paved.

AUD/USD Bearish Scenario

The 50% Fibonacci level is the immediate resistance. If the bears cross the AUD/USD price below the immediate resistance at $0.6635, the decline that began in the current trading session from $0.667 could test the May 30 low at $0.659.

AUD/USD Key Support and Resistance Levels

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

  • Support: $0.6635 / $0.6624 / $0.659
  • Resistance: $0.667 / $0.6679 / $0.671

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.

  • 31 May 2024