The Australian versus the United States dollar currency pair is making lower highs, but the bulls may be just around the corner.
Long-term perspective
The rise in which the Australian dollar finds itself since the middle of March extended until the 07413 high.
As can be seen, from the 0.6873 intermediary level, the appreciation lost part of its steam. Nevertheless, two important levels were conquered: 0.7010 and 0.7191.
However, the next one — 0.7320 — proved to be well guarded by the bears, as the price ended up rendering the 0.7413 high as a false break of the 0.7230 resistance.
Even more, the previous won level — 0.7191 — was also lost by the bulls, as the price ebbed until the next one, 0.7010.
Still, the bulls were not willing to let go, so they validated 0.7010 as support and thrust until the 0.7191, yet again. But, yet again, the bears did their magic so that the 0.7243 high became part of the false piercing of 0.7191.
However, 0.7010 was the area from where the bulls reacted once more. Now, given that the 0.7413 and 0.7243, respectively, are lower highs, the bears could think that their plan is working, as the bulls are getting weaker.
But as the bears foresee the piercing of 0.7010, the bulls know that the new rally from the strong 0.7010 area may be exactly what they need to triumph.
So, as long as 0.7010 remains support, the bulls have chances of conquering 0.7191. Once that is done, they can aim once more for 0.7320.
Only if 0.7010 gives way, then 0.6873 may receive a visit.
Short-term perspective
The rise from the 0.7002 level made its way until the 0.7243 high, validating the 0.7236 resistance.
From there, the price dropped, stopping a hair away from 0.7002, at the 0.7020 low.
The appreciation that followed took the price above the 0.7081 intermediary level.
One possibility is for the bulls to make a throwback towards 0.7080. However, continuing the current advancement is also an option. Both variants have the same outcome: validating 0.7170 as support, which in turn opens the door to 0.7236.
Only if 0.7170 remains resistance, then the bears could push the price towards 0.7002.
Levels to keep an eye on:
D1: 0.7010 0.7191 0.7320 0.6873
H4: 0.7080 0.7170 0.7236 0.7002
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