- AUD/USD remains sidelined between 50-DMA and downward sloping resistance line from late April.
- Sustained break of four-month-old previous resistance joins firmer RSI to keep buyers hopeful.
- Successful trading beyond 200-DMA becomes necessary to reverse the downtrend from April.
AUD/USD remains idle around d 0.7000 as traders await fresh signals during Tuesday’s Asian session, after the upbeat start of the week.
In doing so, the Aussie pair seesaws between the 50-DMA and the downward sloping resistance line from late April. Given the firmer RSI and the lack of bearish MACD signals, the recent upside momentum of the pair is likely to extend.
However, a daily closing beyond the aforementioned resistance line, at 0.7025 by the press time, appears necessary for the AUD/USD bulls to keep reins.
Following that, the 38.2% Fibonacci retracement of the April-July downturn and the 200-DMA, respectively near 0.7060 and 0.7125 will gain the market’s attention.
On the flip side, a break of the 50-DMA support near 0.6880 isn’t an open invitation to the AUD/USD bears as the resistance-turned-support from early April, at 0.6855 at the latest, will challenge the downside moves.
In a case where the AUD/USD prices remain weak past 0.6885, the odds of witnessing a south-run towards the yearly low marked in July around 0.6680 can’t be ruled out.
AUD/USD: Daily chart
Trend: Limited upside expected
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