The Australian dollar versus the US dollar currency pair seems to have failed to profit from the fact the price went above the 0.6600 psychological level. Do the bulls still have a chance?
The rise that followed the confirmation of 0.5516 as support recovered a big part of the depreciation that started from the 0.7034 high.
In doing so, the price consolidated the support area inscribed by the 0.6386 level and the descending trendline that originates from the 0.7034 high.
This zone, alongside the 0.6553 intermediary resistance level, served as boundaries that limited the oscillations after the price got above the trendline and, thus, out of the descending movement.
But the piercing of the 0.6553 resistance, instead of being followed by either a confirmation or a strong departure, led to the price coming back beneath 0.6553.
The fact that etching the 0.6616 high was the pinnacle of the bullish performance indicates that this could be the first sign that the bears might be preparing to join the market. If the bulls are not able to close a day above the 0.6553 level, then they will not have another opportunity until the 0.6386 solid support, the latter also serving as a first bearish target.
However, if the bulls do manage to get the ace out of the sleeve, then they could be thinking of 0.6623 as an intermediary target and of 0.6722 as their main goal, for the time being.
The confirmation of the 0.6251 level as support fueled an appreciation that extended to as high as 0.6612.
Along this path, the trendline got pierced once, but the bulls quickly took action to protect their gains. Thus, they sent the price above the trendline and the 0.6472 intermediary level, an effort that serviced the growth that brought the price above the key 0.6559 resistance.
However, the bulls were not able to keep the price above this level, as it slipped under.
If the bulls manage to bring the price back above 0.6559 once more, then they could focus on 0.6660. But if they don’t and the trendline gets pierced, then the targets will be 0.6472 and 0.6379.
Levels to keep an eye on:
D1: 0.6553 0.6386 0.6623 0.6722
H4: 0.6559 0.6660 0.6472 0.6379
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