Forex Trading: AUDUSD May Bounce Off Key Support at $0.692 Level

Forex Trading: AUDUSD May Bounce Off Key Support at $0.692 Level
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AUDUSD Price Analysis – May 13

A Strong daily bearish candle emerged today that decrease the AUDUSD price. Further increase in the Bears’ pressure may break down the $0.692 level and targets $0.680. Should the $0.680 level holds, the price may bounce and rally towards $0.711.

 

AUD/USD Market

Key levels:

Supply levels: $0.701, $0.711, $0.722
Demand levels: $0.692, $0.680, $0.670

 

AUDUSD Long-term trend: Bearish

On the daily chart, AUDUSD continues its downtrend. A bearish trend started on the daily chart in the AUDUSD market two weeks ago. The Bears maintain their momentum and the price is gradually decreasing towards $0.692 demand level. Although, it observed pullbacks as this is necessary for a trending market. A Strong daily bearish candle emerged today that further decrease the AUDUSD price.

AUDUSD Daily Chart, May 13

The bearish pressure is increasing; this is noticed on the chart as the distance between the two EMAs increase. AUDUSD is trading below the 21 periods EMA and 50 periods EMA and 21 EMA still maintains its position below 50 periods EMA. The Stochastic Oscillator period 14 is below 25 levels with the signal lines pointing down to indicate sell signal and a further reduction in price. Further increase in the bears’ pressure may break down the $0.692 level and targets $0.680. Should the $0.680 level holds, the price may bounce and rally towards $0.711.

AUDUSD medium-term Trend: Bearish

AUDUSD is bearish on the medium-term outlook. The Bears are still in control of the AUDUSD market as the currency pair is making lower lows movement on the 4-hour chart. There was a price retracement on May 09 towards the broken level of $0.701. The price increase was resisted by the dynamic resistance level of 50 periods EMA. The bearish trend continues today and the price has reached $0.692 zone.

AUDUSD 4-HOUR chart, May 13

The Stochastic Oscillator period 14 is below 25 levels with the signal lines pointing down which indicates sell signal.
The price remains below the two EMAs and the Moving Average Convergence Divergence period 12 is at zero levels with the signal lines flat at the level which indicates that consolidation is ongoing in the AUDUSD market.

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About AzeezMustaph

> 86 Articles
Azeez Mustapha is a technical analyst, has many years of trading experience in the stock exchange and the crypto markets. He has broad experience in Forex trading, coaching, and funds management

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