AUD/USD Price Analysis: Bounces off previous resistance towards 0.6950
- AUD/USD picks up bids to pare intraday losses, recovers from day’s low.
- Three-week-old resistance-turned-support direct buyers towards a fortnight-old hurdle.
- 200-SMA holds the key to bull’s return, sellers need validation from six-week-old ascending support line.
AUD/USD bears struggle to keep reins around 0.6930 even as it rebounds from the previous resistance line heading into Monday’s European session.
The Aussie pair’s recovery from the resistance-turned-support line from early June takes clues from the upbeat MACD signals. That said, buyers aim for the fortnight-long trend line resistance, at 0.6970 by the press time.
However, the quote’s upside past 0.6970 depends upon the ability to cross the 200-SMA level surrounding 0.7050. It should be noted that the 0.7000 psychological magnet appears to be the intermediate halt during the run-up beyond 0.6970.
On the flip side, a clear break below the previous resistance line, near 0.6910, will need validation from the 0.6900 round figure to convince AUD/USD bears.
Even so, an upward sloping trend line support from May 12, near 0.6870 by the press time, may challenge the AUD/USD bears before directing them to the yearly low near 0.6830.
Overall, AUD/USD remains on the bear’s radar even if short-term recovery remains on the table.
AUD/USD: Four-hour chart
Trend: Corrective pullback 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.
