AUD/USD Price Analysis: Acceptance above 21-HMA critical for sustained upside
|- Aussie bears eye lower end of the falling channel at 0.7170.
- Hourly RSI flatlined, in the bearish region.
- Downside bias intact while below 21-HMA at 0.7201.
The AUD/USD sellers have returned in the European session after the price failed to sustain its uptick above the 21- hourly Simple Moving Average (HMA) at 0.7201.
Subsequently, a test of the immediate support of the falling trendline at 0.7170 is likely to be tested. A break below which the horizontal 100-HMA at 0.7160 could likely challenge the bears’ commitment.
Note that the spot wavers in a falling channel formation on the hourly chart. The pattern’s natural tendency is to resume the previous uptrend should it be confirmed.
Therefore, the bulls will re-attempt the 21-HMA support-turned-resistance if the aforesaid falling trend line (pattern) support is held onto.
Acceptance above 21-HMA could open doors towards the falling channel (pattern resistance) at 0.7213.
The pattern will get validated on an hourly closing above the latter, with a test of the pattern target above 0.7250 inevitable.
AUD/USD: Hourly chart
AUD/USD: Additional levels
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.