AUD/USD Price Analysis: Bears challenge 20-hour SMA at 0.7800
- AUD/USD consolidates gains near 0.7830 in the Asian session.
- Bears seek a clear break of 0.7800 to firm the grips.
- Momentum oscillator signals overbought conditions.
AUD/USD reverses some of the previous day’s gains on Tuesday in the Asian session. The pair moves in a narrow trading band of 0.7820-0.7840, accumulating a 20-pip movement.
At the time of writing, the AUD/USD pair trades at 0.7834, up 0.04% on the day.
AUD/USD four-hour chart
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On the four-hour chart, the pair reverses the previous day’s gain, after reaching the highs of 0.7892. The formation of the Doji candlestick followed by a big red candle suggests some correction in prices.
The interim support is placed at the 20-hour Simple Moving Average (SMA), 0.7800. It would mark the breach of the 20-SMA, dragging prices toward 0.7760 and 0.7720 horizontal support area.
The Relative Strength Index (RSI) reads at 53, any uptick could push prices higher in the vicinity of Friday’s high at 0.7860 (May 7), followed by the previous day at 0.7892.
The next could be the 0.7950 horizontal resistance zone on the cards.
AUD/USD Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
