AUDUSD is healing its injuries after the 50-day simple moving average (SMA), the surface of the Ichimoku cloud, and the ascending trendline from November blocked last week’s aggressive pullback from a three-year high of 0.8006.
The ongoing recovery mode, however, warrants some caution as the MACD continues to weaken below its red signal line, while the red Tenkan-sen and Kijun-sen lines keep extending their sideways move above the price action. Meanwhile, the RSI is looking more encouraging after its bounce above its 50 neutral mark, though whether its progress is sustainable remains to be seen. What is certain, however, is that the broader upward pattern remains safe as long as the price trades above the ascending trendline and its previous lows. Also, the positively aligned 20- and 50-day SMAs keep promoting any trend improvement.
On the upside, the restrictive region around the 0.7870 level could act as immediate resistance ahead of the 0.7933 – 0.7965 territory, while a break above the 0.8000 number is expected to stall near the 0.8035 barrier.
On the downside, the 50-day SMA and the ascending trendline around 0.7750 may keep navigating the price northwards. Slightly lower, the short descending line and the cloud’s upper boundary could provide a guarantee near 0.7685 if the decline gets more legs. If selling pressure persists, the spotlight will shift towards the 0.7600 handle.
In brief, although the latest upturn in AUDUSD looks fragile, with traders likely waiting for a break above 0.7870 to gain buying confidence, the pair is currently keeping its upward trajectory in control.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.