AUD/USD Price Analysis: Bulls cheer 0.6770 breakout at 11-week high
|- AUD/USD grinds higher after refreshing multi-day top, firmer during three-day uptrend.
- Convergence of previous resistance line, 61.8% Fibonacci retracement restricts downside.
- September’s high, 200-DMA lure buyers amid firmer oscillators.
AUD/USD juggles around 0.6810 heading into Thursday’s European session, after rising to the highest levels since September 13 earlier in the day.
That said, the Aussie pair prints a three-day uptrend as bulls cheer the previous day’s run-up beyond the downward-sloping resistance line from the mid-September, as well as the 61.8% Fibonacci retracement level of the pair’s August-October upside, surrounding 0.6770.
Also keeping the buyers hopeful are the bullish MACD signals and the firmer RSI (14), not overbought.
As a result, the AUD/USD bulls are on the way to approaching the next key hurdle to the north, namely September’s high surrounding 0.6915.
However, the RSI line is near the overbought conditions and may challenge the bull’s upside past 0.6915, if not then the 200-DMA resistance of 0.6925 could restrict the Aussie pair’s further advances.
Meanwhile, a downside break of the 0.6770 support confluence isn’t an open welcome to the AUD/USD bears as a three-week-old horizontal support zone near 0.6580 could restrict the pair’s further declines.
In a case where the quote drops below 0.6580, an ascending trend line from October 13, near 0.6410 acts as the last defense of the bulls.
AUD/USD: Daily chart
Trend: Further upside expected
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