FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURUSD and AUDUSD) for the day)
FxWirePro: AUD/USD snaps downside, pullback in DXY aids corrective bounce
Chart - Courtesy Trading View
AUD/USD was trading 0.89% higher on the day at 0.6511 at around 06:40 GMT.
Softer yields join downbeat US data and inflation expectations to weigh on the US dollar, aiding upside in the pair.
That said, recovery lacks traction, major trend is bearish, scope for downside resumption.
GMMA indicator shows major and minor trend are strongly bearish on the daily charts.
Price action is below major moving averages which are trending lower. MACD and ADX support downside in the pair.
Volatility is high as evidenced by wide Bollinger bands, momentum is bearish, Stochs and RSI are in oversold territory.
Major Support Levels: 0.6372 (May 2020 low), 0.63
Major Resistance Levels: 0.6549 (5-DMA), 0.6641 (200H MA)
Summary: AUD/USD recovery lacks traction, scope for downside resumption as major trend remains bearish.