AUD/USD technical analysis: Bulls likely to aim towards retesting 0.6880-90 supply zone
|- Builds on the overnight goodish rebound from the 0.6810 support area.
- Move beyond 0.6825 confluence hurdle seen as a key trigger for bulls.
Having shown resilience near the 0.6810 horizontal zone, the AUD/USD pair staged a goodish rebound on the first day of a new trading week and gained some follow-through traction on Tuesday.
The overnight sustained move beyond the 0.6825 confluence hurdle was seen as a key trigger for bullish traders and remained supportive of the ongoing positive momentum to near one-week tops.
The mentioned confluence region comprised of the top end of a short-term descending trend-channel formation and 200-hour EMA, which should now act as a key pivotal point for short-term traders.
Meanwhile, oscillators maintained their bullish bias on 4-hourly/daily charts and support prospects for further gains, albeit slightly overbought conditions on the 1-hourly chart warrant some caution.
Hence, any subsequent move up might continue to confront stiff resistance near the 0.6880-90 supply zone, which if cleared might further inspire bullish traders and negate any near-term bearish bias.
Sustained strength beyond the 0.6900 handle might prompt some additional short-covering move towards the key 0.70 psychological mark with some intermediate resistance near the 0.6930 region.
On the flip side, the confluence resistance breakpoint, around the 0.6825 region, now seems to protect the immediate downside and is closely followed by the 0.6810-0.6800 neckline support.
A sustained breakthrough the said support will confirm a near-term bearish double-top chart pattern on the daily chart and turn the pair vulnerable to accelerate the slide further towards mid-0.6700s.
AUD/USD 1-hourly chart
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