AUD/USD Price Analysis: Bounces off monthly support towards 0.7500
|- AUD/USD snaps two-day losses, refreshes intraday top of late.
- Firmer MACD, strong RSI add to the bullish bias.
- Convergence of 200-DMA, three-month-old resistance line becomes a tough nut to crack for the bulls.
AUD/USD again rebounds from a monthly support line, snapping a two-day downtrend while refreshing the daily high around 0.7485 ahead of Monday’s European session.
Given the firmer RSI line, not overbought, coupled with the bullish MACD signals, AUD/USD prices are likely to remain firm, suggesting the 0.7500 threshold break on hand.
However, the latest swing high near 0.7550, also the highest since early July, will precede the convergence of the 200-DMA and an upward sloping trend line from July 29 to challenge the AUD/USD upside close to 0.7565.
Should the pair buyers ignore RSI conditions and overcome the 0.7565 hurdle, the late June’s peak of 0.7617 will be in focus.
Meanwhile, a daily closing below the stated support line, near 0.7455 by the press time, will aim for the 100-DMA level of 0.7397 to probe the AUD/USD bears.
In a case where the quote remains weak past 100-DMA, July’s low near 0.7290-85 should return to the chart.
AUD/USD: Daily chart
Trend: Further upside expected
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