AUD/USD Price Analysis: Eases from multi-day tops, still well bid above 0.7100 mark
|- AUD/USD edged higher for the second consecutive session on Tuesday.
- The momentum pushed the pair to four-day tops, around 38.2% Fibo. level.
- Mixed technical indicators on hourly/daily charts warrant caution for bulls.
The AUD/USD pair built on the overnight recovery move from the 100-day SMA support, around the key 0.7000 psychological mark and gained traction for the second consecutive session on Tuesday.
The momentum pushed the pair to four-day tops, near a resistance marked by the 38.2% Fibonacci level of the 0.7346-0.7005 recent decline. A sustained move beyond 100-hour SMA and a subsequent strength beyond the 0.7100 round-figure mark was seen as a key trigger for intraday bullish traders.
Meanwhile, technical indicators on the 4-hourly chart have recovered from the bearish territory and support prospects for additional gains. However, oscillators on the 1-hourly chart are already flashing slightly overbought conditions and maintained their bearish bias on the daily chart.
The set-up warrants some caution for bullish traders ahead of the first US presidential debate. This makes it prudent to wait for some strong follow-through buying before confirming that the recent downfall is over and positioning for any further appreciating move for the AUD/USD pair.
On the flip side, the 0.7100 mark now seems to protect the immediate downside and is closely followed by the 23.6% Fibo. level around the 0.7080 region. Dips towards the mentioned support might continue to attract some buying and remain limited near the 100-hour SMA, around the 0.7065 region.
A convincing breakthrough will negate any near-term positive bias and turn the pair vulnerable to eventually slide below 100-day SMA support. The downward trajectory could then drag the AUD/USD pair further towards the 0.6925 intermediate support en-route the 0.6900 round-figure mark.
AUD/USD 1-hourly chart
Technical levels to watch
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.