Recovering in yesterday’s session by almost 2.3%, the AUDUSD currency pair is beginning to show signs of momentum loss just ahead of the 1.0350 resistance barrier in the 15-minute timeframe.  The level has posed problems for the currency pair before – causing the AUDUSD to fall by about 150 pips in the beginning of the month.  But, is this ime any different?

Possibly.  Although price action is looking a bit weak ahead of the key resistance barrier, technical indicators are showing some potential for a flight up, rather than a prolonged downturn in the currency pair.  First and foremost, oddly enough, oscillators are showing signs of being oversold – Stochastic is registering a reading of 14.68.

AUDUSD 15-minute timeframe – Source:  FXTrek Intellicharts

The gauge reading is in conjunction with a short term support level at 1.0264 or the 38.2% Fibonacci retracement level from 1.0120-1.0336 bounce.  Should this level remain a strong downside support for the price action, we anticipate a retest of the 1.0300 psychological figure before AUDUSD tests the 1.0350 level once again.

But, should sellers win out and break the current 1.0264 support level, AUDUSD support isn’t seen till 1.0208 in the short term.