AUD/USD lands on 20-day MA; keeps uptrend safe [Video]
|AUDUSD nicely landed on the 20-day simple moving average (SMA) following its pullback from a peak of 0.6569 on April 30.
Despite the latest downside reversal, the main trend remains up in the short-term picture, with the price set to confirm another higher low at 0.6371 and head north again if the bulls manage to close above the nearby 0.6450 resistance, which is the 61.8% Fibonacci retracement level of the bearish wave from the 0.7031 top. The bullish cross between the 20- and 50-day SMAs is also endorsing the upside direction.
If the aussie successfully overcomes the 0.6450 mark, it will be looking for a resumption of the uptrend above 0.6569 and a retest of the 200-day SMA currently around the 0.6655 key barrier. Moving higher, the rally may take a breather near 0.6755 before continuing towards the 0.6860-0.6930 area.
Otherwise, a decline below the 20-day SMA could add more legs to the sell-off, shifting all eyes to the previous low of 0.6252. The 50-day SMA, the 50% Fibonacci, and the blue Kijin-sen line are all positioned in the neighborhood, too, giving extra importance to the region. Violating that block, the pair could directly meet the 38.2% Fibonacci of 0.6080 if the 0.6200 level fails to provide support, eliminating hopes of an upward-trending market too.
Summarizing, AUDUSD is expected to recoup recent losses if it successfully breaches the nearby 0.6450 resistance. Should the pair retreat below the 20-day SMA, it could come under renewed pressure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.