- March 23, 2021
- Posted by: cabana-admin
- Category: Market Insights
General overview: AUD/USD pair falls below the support level 0.7700 level and creates the sell side towards the market. A co-ordinate sanctioning of Chinese officials prompted fresh selling around AUD/USD. Geopolitical tensions in the Korean peninsula also weighed on the perceived riskier Aussie. A sustained breakthrough below the 0.7700 mark should pave the way for further weakness. The AUD/USD pair refreshed session lows in the last hour, with bearish traders now awaiting a sustained break below strong horizontal support near the 0.7700 mark. Apart from this, reports that North Korea is deploying multiple rocket launchers on the inter-Korean border islet of Chagrin took its toll on the global risk sentiment. This, in turn, was seen as another factor that forced investors to take refuge in the safe-haven US dollar and further collaborated to drive flows away from the perceived riskier aussie.The pair is making the lower low in the market and creates the selling pressure in the market.
Technical analysis: From the technical point of view we can say that market makes the bearish side in the market. The pair makes the negative side in the market and creates the ascending channel pattern in the chart. Despite the negative factors, the AUD/USD pair, so far, has managed to defend the 0.7700 round-figure mark. A sustained breakthrough will mark a near-term bearish breakdown and set the stage for an extension of the recent sharp pullback from monthly tops, around mid-0.7800. The pair is below the major and minor EMA and SMA lines and formed the potential bearish sign towards the market. Odds are also favour of the bulls in market. The pair breaks its strong support level 0.7700 and still downfall is on continuation in the market. The RSI is also below the 30 level and macd is also zero level in the market. The support level will be 0.7647 followed 0.7597 and resistance will be 0.7736 followed by 0.7786.
Trade idea: Our traders will move towards the sell side in the market entry will be 0.7685 target will be 0.7635 -0.7585 stop loss will be 0.7735.