AUDUSD: RSI moves into oversold levels
The AUDUSD has experienced a consistent decline of over 3% in the past month. This is primarily due to the growing strength of the U.S. dollar as the next Fed decision approaches (January 29), where interest rates are expected to remain stable at 4.5%.
By Julian Pineda, CFA - Market Analyst
- Bearish Channel: Since October 4, 2024, a solid bearish channel has been maintained, with the price reaching a low of 0.61308. However, to further confirm bearish momentum, it is almost essential to break through the next key support level at 0.60151.
- RSI: Currently, the RSI line is oscillating below the 30 level, indicating significant oversold conditions, where bearish momentum has taken over the market with greater intensity. Additionally, higher lows on the RSI and lower lows on the price have created a bullish divergence.
Both events in the indicator may signal the emergence of potential short-term bullish corrections as short positions ease near support zones.
Key Levels: - 0.62369: A nearby resistance level that has acted as a point of neutrality in recent oscillations and coincides with the upper boundary of the current bearish channel. Breaks above this level could bring back buying momentum and challenge the current bearish formation on the chart. This level is crucial to monitor for potential short-term bullish corrections.
- 0.60151: A key support level and the closest barrier for bearish positions. Breaks below this level could mark a new price low and further consolidate the strength of the current bearish channel.
By Julian Pineda, CFA - Market Analyst
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