AUD/USD Technical Analysis: Set-up favours bullish traders, move beyond 0.6800 handle awaited
|- AUD/USD built on upbeat Chinese PMI-led goodish intraday positive momentum.
- Sustained break through descending trend-channel paves way for additional gains.
The AUD/USD pair added to its intraday gains and climbed to multi-day tops in the last hour, with bulls now looking to extend the momentum further beyond the 0.6800 handle.
Against the backdrop of upbeat Chinese manufacturing data, some renewed USD weakness provided an additional boost and remained supportive of the ongoing positive move.
The intraday momentum helped the pair to break through a confluence barrier, comprising of the top end of near two-week-old descending trend-channel and 100-hour SMA.
A subsequent move and acceptance above 200-hour SMA might have already shifted the near-term bias in favour of bullish traders and support prospect for additional gains.
Meanwhile, technical indicators on hourly charts have been gaining positive momentum and further reinforce the intraday constructive outlook ahead of US ISM Manufacturing PMI.
Moreover, oscillators on the daily chart have recovered from the bearish territory but are yet to catch up with the positive momentum, warranting some caution amid persistent trade uncertainty.
Hence, it will be prudent to wait for some strong follow-through buying beyond the 0.6800 round-figure mark before positioning for any further near-term appreciating move for the pair.
AUD/USD 1-hourly chart
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