AUD/USD Price Analysis: Bears challenge 20-hour SMA at 0.7800
|- AUD/USD consolidates gains near 0.7830 in the Asian session.
- Bears seek a clear break of 0.7800 to firm the grips.
- Momentum oscillator signals overbought conditions.
AUD/USD reverses some of the previous day’s gains on Tuesday in the Asian session. The pair moves in a narrow trading band of 0.7820-0.7840, accumulating a 20-pip movement.
At the time of writing, the AUD/USD pair trades at 0.7834, up 0.04% on the day.
AUD/USD four-hour chart
On the four-hour chart, the pair reverses the previous day’s gain, after reaching the highs of 0.7892. The formation of the Doji candlestick followed by a big red candle suggests some correction in prices.
The interim support is placed at the 20-hour Simple Moving Average (SMA), 0.7800. It would mark the breach of the 20-SMA, dragging prices toward 0.7760 and 0.7720 horizontal support area.
The Relative Strength Index (RSI) reads at 53, any uptick could push prices higher in the vicinity of Friday’s high at 0.7860 (May 7), followed by the previous day at 0.7892.
The next could be the 0.7950 horizontal resistance zone on the cards.
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.