AUD/USD in Consolidation Around 0.7744

The Australian versus the United States dollar currency pair seems to have hit the pause button for the climb, for it unfolds a consolidation phase.

Long-term perspective
The retracement from the 0.7413 high slipped under the level of 0.7320, triggering further bearish interest. As a result, the price ebbed until the 0.6991 low from where the bulls took decisive action, sending it in an ascending movement.
This is how the quotation of 0.7820 was reached. Since the rise had minor corrections, the bears cannot hope for a pronounced decline, as they only come after exhaustive appreciations, which is not the case here.
Furthermore, the drop that validated the 0.7453 support did a pretty good job in printing a correction that, given its depth and the rejection, outfits the appreciation with a healthy perspective.
But, a bearish amendment would be that the price was not able to validate 0.7744 as support. However, the fact that, after this “failure”, the price did not fall gives credit to the bulls.
So, as long as the price oscillates under 0.7744, the bulls are expected to attempt the validate of the level as support. If they manage to do so, then the firm area of 0.7914 is their main objective for the time being.
Still, the bears may try to turn the situation in their favor and spring a fall. Nevertheless, it could very well be limited by the 0.7587 level, from where yet another strong rejection may take place.

Short-term perspective
After validating the 0.7460 support area, the price started an appreciation that noted the high of 0.7820.
From there, the price entered into a consolidative phase, limited by the 0.7667 support and the 0.7802 resistance.
The fact that the 0.7782 lower high was printed on the chart may not come to aid the bulls. Still, as long as 0.7642 low is not taken out, every validation of 0.7667 as support triggers another bullish attempt to conquer 0.7802.
Only if 0.7667 cedes, then 0.7580 gets exposed., while if 0.7742 is turned to support, 0.7802 becomes more tangible for the bulls.

Levels to keep an eye on:

D1: 0.7744 0.7914 0.7587
H4: 0.7667 0.7802 0.7580 0.7742

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Original from: www.earnforex.com