AUD/USD Price Analysis: 50-DMA defends bulls around 0.7000
- AUD/USD reverses intraday losses while taking rounds to six-week high.
- Bullish MACD signals, firmer RSI favor upside momentum but descending trend line from April tests buyers.
- Sellers need to four-month-old previous resistance line to retake control.
AUD/USD remains firmer around 0.6980-90 even as bulls struggle to refresh their monthly high during early Monday morning in Europe. In doing so, the Aussie pair seesaws between the 50-DMA and a downward sloping resistance line from April 21.
Given the bullish MACD signals and the firmer RSI (14), not overbought, coupled with the pair’s successful trading above a descending resistance line from early April, now support around 0.6920, the AUD/USD pair is likely to advance further.
However, a daily closing beyond the aforementioned resistance line, near 0.7015 by the press time, appears necessary for the bulls to keep reins.
Following that, the pair’s run-up towards the mid-June swing high of 0.7070 and then to June’s monthly peak surrounding 0.7285 can be expected.
On the flip side, the 50-DMA and the resistance-turned-support line, respectively near 0.6970 and 0.6920, restrict short-term AUD/USD downside.
In a case where the pair remains weak past 0.6920, lows marked during June and May, close to 0.6850 and 0.6830 in that order, will be important to watch for the pair sellers.
AUD/USD: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
