AUD/USD Price Analysis: Pullback remains elusive beyond 0.7230
|- AUD/USD fades bounce off intraday low, mildly offered around January’s peak.
- Resistance-turned-support from mid-November, 50% Fibonacci retracement limits further downside.
- Multiple hurdles to challenge bulls below 0.7371, oscillators favor upside momentum.
AUD/USD bulls take a breather around a seven-week high, pressured towards the intraday low of 0.7275 during early Thursday morning in Europe.
In doing so, the Aussie pair takes a U-turn from the multi-day high marked the previous day.
However, the quote holds on to the latest breakout of a descending trend line from November 15.
Other than the trend line breakout, bullish MACD signals and firmer RSI line also favor the AUD/USD buyers until the quote drops back below the previous resistance line, near 0.7260 at the latest. It’s worth noting that the 50% Fibonacci retracement of the pair’s downside from October 2021 to January 2022 adds strength to the 0.7260 support.
Even if the quote breaks lower, the 100-DMA support level of 0.7230 will try to defend the AUD/USD bulls, failing to which can recall the early January’s low near 0.7130 to the chart.
Meanwhile, the pair’s fresh upside will aim for January’s top of 0.7315 but the 200-DMA and 61.8% Fibo, close 0.7330-35, will challenge the pair bulls afterward.
In a case where the AUD/USD prices rise past 0.7335, the November 15 swing high of 0.7371 will be crucial resistance to watch.
AUD/USD: Daily chart
Trend: Further upside expected
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