AUD/USD Price Analysis: Bulls attack 0.6730 resistance confluence
- AUD/USD picks up bids to poke short-term key resistance during two-day uptrend.
- Convergence of 200-EMA, descending trend line from Tuesday restricts immediate upside.
- Firmer oscillators suggest further recovery towards weekly resistance line.
- Short-term triangle’s support probes sellers from retaking control.
AUD/USD picks up bids to refresh intraday high near 0.6730 during early Thursday. In doing so, the Aussie pair buyers attack a short-term key resistance while extending the previous day’s recovery moves during a sluggish Asian session.
The quote’s run-up takes clues from firmer RSI (14), not overbought, as well as the bullish MACD signals.
However, the convergence of the 200-Exponential Moving Average (EMA) and a two-day-old descending resistance line, near 0.6730, challenges the AUD/USD bulls.
Also acting as an upside hurdle is the downward-sloping resistance line from December 13, close to 0.6785 by the press time.
In a case where AUD/USD manages to stay firmer past 0.6785, the 0.6800 round figure could act as the last defense of the bears before directing the upside moves toward the monthly high near 0.6895, as well as the 0.6900 round figure.
On the flip side, pullback moves remain elusive unless staying inside the two-day-old symmetrical triangle, currently between 0.6730 and 0.6680.
Even if the quote drops below 0.6680, it needs validation from the monthly low of 0.6630 and the 0.6600 round figure to convince bears.
Overall, AUD/USD is likely to pare recent losses but the upside momentum has limited room towards the north.
AUD/USD: Hourly chart
Trend: Further upside 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.
