- AUD/USD grinds near the highest level in a fortnight after three-day uptrend.
- Convergence of 50-DMA, 50% Fibonacci retracement guards immediate upside.
- Upbeat oscillators, recovery from falling wedge’s bottom line keeps Aussie buyers hopeful.
- RBA is expected to keep current monetary policy unchanged amid market’s indecision.
AUD/USD bulls take a breather around 0.6620, making rounds to a two-week high amid Tuesday’s sluggish session as Aussie pair traders await the Reserve Bank of Australia’s (RBA) Interest Rate Decision. In doing so, the quote remains sidelined after rising in the last three consecutive days, following a bounce off the yearly falling wedge’s bottom line.
Also read: Reserve Bank of Australia Preview: AUD/USD ready for another hike?
The Aussie pair’s rebound from the support line of a falling wedge established since late December 2022 crossed 61.8% Fibonacci retracement of October 2022 to February 2023 upside and teased the buyers in the last few days. Adding strength to the upside momentum are the recently bullish MACD signals and upbeat RSI (14) line to keep buyers hopeful.
With this, the AUD/USD pair is all set to confront a convergence of the 50% Fibonacci retracement level and the 50-DMA, around 0.6660. However, any further upside beyond the same hinges on the RBA’s capacity to lure the bulls.
Following that, the aforementioned falling wedge bullish chart pattern’s top line, close to 0.6730 at the latest, becomes crucial to watch for clear directions.
Should the quote rises past 0.6730, the odds of witnessing a run-up towards crossing the previous monthly high of around 0.6720 can’t be ruled out.
On the contrary, pullback moves may initially aim for the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, close to 0.6545 at the latest.
However, the AUDUSD bears need validation from the wedge’s bottom line, surrounding 0.6495 by the press time.
AUD/USD: Daily chart
Trend: Further upside expected
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