AUD/USD Price Analysis: Bounces off six-week-old support towards 0.7200
- AUD/USD portrays corrective pullback around weekly low, snaps four-day downtrend.
- Short-term support break joins bearish MACD signals, downbeat RSI to favor sellers.
- Bulls need validation from 0.7280 to retake control.
AUD/USD picks up bids to refresh intraday high around 0.7190, up 0.11% on a day during Wednesday’s Asian session.
In doing so, the Aussie pair not only recovers from a one-week low flashed the previous day but also prints daily gains for the first time in five days.
The corrective pullback could be linked to the pair’s U-turn from an upward sloping trend line from early December. However, a clear downside break of the weekly support line joins bearish MACD signals and sluggish RSI to keep sellers hopeful.
That said, the latest recovery may aim for the previous support line near 0.7215 but monthly horizontal resistance near 0.7280 becomes the key hurdle to watch afterward.
Should the quote rises past 0.7280, the latest peak of 0.7315 and a descending resistance line from May, near 0.7400 will be crucial to watch.
On the flip side, the stated support line near 0.7170 precedes an ascending trend line from December 20, close to 0.7155, to limit short-term AUD/USD downside.
Following that, 61.8% Fibonacci retracement of December-January upside, near 0.7115, as well as December 20 trough near 0.7080, will challenge AUD/USD sellers.
AUD/USD: Four-hour chart
Trend: Further 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.
