AUD / USD is rising since opening this week, after hitting a low of 0.6991. At this moment in the American session, it is facing the downtrend channel formed since October 29, which will be the resistance that must be overcome.
A sharp break and consolidation above this bearish channel could give the Aussie a strong bullish momentum to hit the zone of resistance 2/8 Murray at 0.72. If broken, this will lead to the level the 200 EMA at 0.7246.
Members of the Reserve Bank of Australia (RBA) have decided to leave the Official Cash Rate (OCR) unchanged at a record low of 0.10% during their December monetary policy meeting.
The Australian dollar is likely to resume its downtrend for the next few days. This upward movement will be part of a technical correction and the upward force is likely to be exhausted in the next few days. A good area to sell again is the 0.7250 level, where the 200 EMA is located.
In the 4-hour chart, we can see that the AUD / USD has left a GAP at the opening of this week. This represents a negative signal for the pair, and it is likely that in the short term it will again fall to these price levels of 69.90 to cover this gap.
Our forecast in the next few hours for the euro is a consolidation above 0.7062. As long as AUD/ USD is trading above this zone, we will have an opportunity to buy with the target at 0.7202 (2/8) and 0.7246 (200 EMA).
The market sentiment report for today, December 07, shows that there are 69.88% of operators who are buying the AUD / USD pair. This data provided a bearish sign in the long term. It is bearish because investors act against the trend. First, we could expect a recovery to 0.7246. Then, the price may again resume its downward movement with the target at 0,6958 (-2/8)
The eagle indicator is showing a bullish signal. There is distance until it reaches the 95-point level that represents an extremely overbought market. This would suggest that the Aussie will reach 0.7250. and then resume its main downtrend.
Support and Resistance Levels for December 07 - 08 2021
Resistance (3) 0.7202
Resistance (2) 0.7141
Resistance (1) 0.7126
----------------------------
Support (1) 0.7069
Support (2) 0,7033
Support (3) 0,6976
***********************************************************
A trading tip for Aussie on December 07 - 08, 2021
Buy in case of rebound at 0,7062 (21 SMA) with take profit at 0.7202 (2/8) and 0.7246 (200 EMA), stop loss below 0.7028.