AUD still looks vulnerable to downside moves

September 29, 2020 Editor Altcoin 0

  • AUD/USD is trading around half a percent higher on Monday.
  • The structure of the chart still looks bearish despite the move higher.

AUD/USD 4-hour chart

The 4-hour chart of AUD/USD has been retracing on Monday but there are still some key levels above the current price. It seems the bears could not sustain a move below the psychological 0.70 area as the price popped back up to hit 0.7087. 

Now looking at the chart that level could be slightly sticky if the bulls try to kick on from here. Above this level, the green horizontal line stands at 0.7180. This level looks like a magnet for the price as it has had the most amount of touches and reactions in a short space of time.

The indicators are looking mixed at the moment as the MACD histogram is bullish but the signal lines remain under zero. The Relative Strength Index is pushing away from the oversold area but cannot break past 50. This could be another bearish sign. 

The trend is still very much an uptrend on the daily chart but this move lower does look like the start of a reversal to the downside. The bulls may need to watch some of these levels above the current price as the bears could step in at these points in large numbers. 

Additional levels