The Australian versus the United States dollar currency pair is at the 0.7010 support level. Will the bulls have the strength to secure another rise?
After the validation of the 0.5978 intermediary level as support, the price continued rising, extending until the 0.7413 high.
As the bulls let the price throwback to 0.7320 so that it becomes support, the bears took their chance and sent the price beneath the level.
As a result, the drop prolonged until the 0.7191 area. From there, the bulls attempted to anew the emergence. However, because 0.7413 was labeled as a false piercing of the 0.7320 resistance level, their efforts were limited, 0.7320 serving as resistance.
This gave the bears the necessary confidence so that they would be able to sustain the depreciation, which they did, sending the price to 0.7010.
From 0.7010, the bulls refreshed their attempts, and the consequence was that 0.7191 played as resistance, etching the 0.7243 high as part of, now, the second false piercing.
The price sank yet again, then printed the 0.7157 high, then dropped once more at 0.7010.
If 0.7010 remains support, the bulls could try again to get back in business. Their advantage would be that the first resistance is 0.7191, and if they manage to take the price there, then they would have already taken out the 0.7157 high, thus printing a higher high.
On the other hand, the series of lower highs — 0.7413, 0.7243, and 0.7157 — is a signature of the bearish strength. So, if 0.7010 gives way, then 0.6873 is the next target.
From the 0.7243 high, after validating the 0.7238 resistance, the price dropped until the 0.7020 low.
From there, it appreciated, but upon reaching 0.7170, under bearish pressure, it dropped again.
If 0.7002 remains support, then 0.7081 is the first bullish target. However, if 0.7002 fails, then the bears could extend the drop until 0.6949.
Levels to keep an eye on:
D1: 0.7010 0.7191 0.6873
H4: 0.7002 0.7081 0.6949
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