Trading AUDUSD Among the Market Turmoil

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For the AUDUSD currency pair, we see an upward movement of the market within a large green channel. In early November, the price reached the upper green wall, after which the market began to decline in the direction of the lower green line inside the descending yellow channel.

SimpleFX AUDUSD Chart Analysis: January 6, 2022

In the first half of December, the price reached the lower green line at the intersection with the lower yellow wall. The bears failed to break through these two support lines, so the bulls took the initiative. However, the last section of the chart shows that the price fluctuates in the lower green area.

There is a possibility that the exchange rate of the currency pair will rise to higher levels, but first, the bulls need to overcome the resistance level of 0.725, located on the upper yellow wall. In this case, market participants can expect the price to rise to the resistance level of 0.767.

However, the last rebound from the upper yellow line may give impetus to the bearish movement of the pair in the direction of the lower green line to the support level of 0.704. With a successful breakdown of this price level, the bears will be able to continue their way to the next important support level of 0.680, which is located on the lower wall of the yellow channel.

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