AUD/USD Price Analysis: Bounces off immediate support line towards 0.6750 ahead of US PMI
- AUD/USD bounces off one-week-old descending support line after posting the first weekly loss in three.
- RSI’s rebound from oversold territory adds strength to Aussie pair’s recovery hopes.
- Previous support line guards immediate upside, 61.8% Fibonacci retracement acts as additional downside filter.
AUD/USD reverses from intraday low towards 0.6750 amid early Monday morning in Europe. In doing so, the Aussie pair recovers from the lowest levels in a week while bouncing off a one-week-old rising support line.
Apart from the short-term falling support line, the nearly oversold RSI (14) line also underpins bullish bias about the AUD/USD pair. However, the quote’s recovery needs validation from the previous support line from July 06, near 0.6750 by the press time. Adding strength to the 0.6750 hurdle is the 50% Fibonacci retracement of July 06-13 upside.
In a case where the AUD/USD price remains bullish past 0.6750, the 200-Hour Moving Average (HMA) surrounding 0.6800 and a downward-sloping resistance line from July 14, close to 0.6830 at the latest, will challenge the Aussie pair buyers before directing them to the previous monthly high of around 0.6900.
On the flip side, a downside break of the aforementioned immediate support line, close to 0.6715 by the press time, will need to break the 61.8% Fibonacci retracement level of around 0.6710, also known as the golden ratio, as well as the 0.6700 round figure to please AUD/USD bears.
Following that, a downward trajectory towards the late June swing low of around 0.6600 can’t be ruled out.
Overall, AUD/USD portrays a corrective bounce but remains on the bear’s radar at the start of the key week.
AUD/USD: Hourly chart
Trend: Limited recovery 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.
