On the daily chart below for
AUDUSD, we can see that the price action remains choppy as the uncertainty
prevails in the market. The US economic data keeps giving recessionary vibes
with the US
retail sales missing expectations across the board and giving
the USD a boost the last Friday.

This move higher in the US Dollar
though is fading today. It’s a push and pull between buyers and sellers and
none of them has a high conviction in what’s next. The resistance at 0.6781 coupled with the 38.2%
Fibonacci
retracement level is a tough nut to crack for the buyers as
the sellers keep defending the level strongly.

AUDUSD
technical analysis

On the 4 hour chart below, we can
see the current range between the support at 0.6620 and the resistance at
0.6793. At the moment the only strategy here is to “play the range” buying at
support and selling at resistance. The recent rejection at the resistance
should give the sellers enough conviction to target the support. There’s no top
tier US economic data until Thursday and Friday, so
the technicals and the sentiment will guide the price action.

On the 1 hour chart below, we can
see that today’s pullback switched the bearish momentum to a bullish one with
the moving
averages crossing to the upside. The little trendline should be the place where buyers
and sellers are likely to lean on. The buyers will want to see the price
bouncing from the trendline with the red long period moving average acting as
resistance. The sellers, on the other hand, will want to see the price to break
below the trendline to jump onboard and push the price towards the bottom of
the range.

This article was written by ForexLive at www.forexlive.com.