In the Asian session, the AUD / USD pair is trading below the SMA of 21 and below the EMA of 200 within a downtrend channel. The bias is expected to be more bearish and the price may reach up to the zone of 5/8 of murray.
The US dollar has been strengthening in anticipation of the announcement by the US Federal Reserve on Wednesday. Some analysts believe it would be premature to end QE. The Fed's policy announcements will give strong volatility to the pair in the American session.
Given that the AUD / USD pair is consolidating below the SMA of 21 and below 0.7710, it is a sign that there could be a short-term decline because below that level the Aussie will not be able to have more than just falling to the bottom of the bearish channel located at 0.7629.
According to the 4-hour chart, the risk is to the downside as the pair is consolidating below the bearish channel and below both the 21 and 200 moving averages.
As long as the AUD / USD pair consolidates below this zone, any attempt to break through these levels and fail to consolidate will be considered a sell signal.
The pair has a wide zone to extend its fall towards the price zone of 0.7629, at this level the 5/8 murray line and the lower sloping line of the bearish channel converge, a pullback towards the 21 SMA around the zone of 0.7710 will be a good selling opportunity.
The technical reading of the eagle indicator is showing a bearish signal, as we have drawn a line that represents a short-term probability of a bearish movement. Therefore, we recommend selling below 0.7710.
Support and Resistance Levels for June 16 – 17, 2021
Resistance (3) 0.7749
Resistance (2) 0.7721
Resistance (1) 0.7707
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Support (1) 0.7667
Support (2) 0.7648
Support (3) 0.7622
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Trading tip for AUD/USD for June 16 - 17, 2021
Sell if pullback 0.7720 (SMA 21), with take profit at 0.7629 (5/8), stop loss above 0.7745.
