AUD/USD Price Analysis: Bulls extend 200-EMA breakout towards 0.7000
- AUD/USD clings to mild gains during two-day rebound from monthly low.
- Sustained break of 200-EMA joins upbeat oscillators to favor buyers.
- Two-week-old horizontal resistance area challenges immediate upside while ascending trend line from late December probes bears.
AUD/USD holds onto the previous day’s recovery moves near 0.6960 as buyers keep the reins on crossing the 200-bar Exponential Moving Average (EMA) during early Wednesday. In doing so, the Aussie pair marches towards a fortnight-old horizontal resistance region amid bullish signals from MACD and a gradual rise in the RSI (14) line.
That said, the risk-barometer pair is likely to overcome the immediate hurdle surrounding the 0.7000 psychological magnet. However, an area comprising multiple levels marked since January 18, close to 0.7060 could challenge the AUD/USD buyers afterward.
In a case where the AUD/USD price remains firmer past 0.7060, a run-up towards the 0.7100 round figure and then to the monthly high surrounding 0.7160 can’t be ruled out.
It should be noted that the Aussie pair’s successful rise above 0.7160 could challenge June 2022 high near 0.7285.
Meanwhile, AUD/USD bears aren’t safe if they take entries on the quote’s fresh downside below the 200-EMA, around 0.6935.
The reason could be linked to the quote’s multiple bounces off an upward-sloping support line from late December 2022, close to 0.6865 at the latest. Following that, the monthly low of 0.6855 may act as the last defense of the AUD/USD bulls.
AUD/USD: Four-hour 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.
