AUD/USD Price Analysis: 50-DMA defends bulls around 0.7000
|- AUD/USD reverses intraday losses while taking rounds to six-week high.
- Bullish MACD signals, firmer RSI favor upside momentum but descending trend line from April tests buyers.
- Sellers need to four-month-old previous resistance line to retake control.
AUD/USD remains firmer around 0.6980-90 even as bulls struggle to refresh their monthly high during early Monday morning in Europe. In doing so, the Aussie pair seesaws between the 50-DMA and a downward sloping resistance line from April 21.
Given the bullish MACD signals and the firmer RSI (14), not overbought, coupled with the pair’s successful trading above a descending resistance line from early April, now support around 0.6920, the AUD/USD pair is likely to advance further.
However, a daily closing beyond the aforementioned resistance line, near 0.7015 by the press time, appears necessary for the bulls to keep reins.
Following that, the pair’s run-up towards the mid-June swing high of 0.7070 and then to June’s monthly peak surrounding 0.7285 can be expected.
On the flip side, the 50-DMA and the resistance-turned-support line, respectively near 0.6970 and 0.6920, restrict short-term AUD/USD downside.
In a case where the pair remains weak past 0.6920, lows marked during June and May, close to 0.6850 and 0.6830 in that order, will be important to watch for the pair sellers.
AUD/USD: Daily chart
Trend: Further upside expected
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.