AUD/USD Price Analysis: Bounces off six-week-old support towards 0.7200
|- AUD/USD portrays corrective pullback around weekly low, snaps four-day downtrend.
- Short-term support break joins bearish MACD signals, downbeat RSI to favor sellers.
- Bulls need validation from 0.7280 to retake control.
AUD/USD picks up bids to refresh intraday high around 0.7190, up 0.11% on a day during Wednesday’s Asian session.
In doing so, the Aussie pair not only recovers from a one-week low flashed the previous day but also prints daily gains for the first time in five days.
The corrective pullback could be linked to the pair’s U-turn from an upward sloping trend line from early December. However, a clear downside break of the weekly support line joins bearish MACD signals and sluggish RSI to keep sellers hopeful.
That said, the latest recovery may aim for the previous support line near 0.7215 but monthly horizontal resistance near 0.7280 becomes the key hurdle to watch afterward.
Should the quote rises past 0.7280, the latest peak of 0.7315 and a descending resistance line from May, near 0.7400 will be crucial to watch.
On the flip side, the stated support line near 0.7170 precedes an ascending trend line from December 20, close to 0.7155, to limit short-term AUD/USD downside.
Following that, 61.8% Fibonacci retracement of December-January upside, near 0.7115, as well as December 20 trough near 0.7080, will challenge AUD/USD sellers.
AUD/USD: Four-hour chart
Trend: Further recovery 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.