AUD/USD Price Analysis: Bulls face rejection near 0.7860 despite rising iron ore prices
- AUD/USD retreats from 0.7860 in the Asian session.
- More downside in the offing below the 0.7820 mark.
- Neutral momentum oscillator tilts in favor of bears.
The AUD/USD pair looks exhaustive near the 0.7860 mark in the Asian session. The pair witnessed a sharp price rise on a weekly basis, however, it now lacks the strength to carry on the gains into a fresh week.
Last week’s surge in the aussie could be associated with the post-NFP-led US dollar’s decline and a record rise in iron-ore prices.
At the time of writing, the AUD/USD pair is trading at 0.7841, down 0.02% on the day.
AUD/USD four-hour chart
-637562151419461150.png&w=1536&q=95)
On the four-hour chart, the pair accumulates gains, after having touched the intraday high at 0.7862. If prices break the 20-hour Simple Moving Average (SMA) placed at 0.7830, then it will negate the upward momentum in the short term.
On moving downward, prices would meet the 0.7820 horizontal support and the next would be at0.7780, the 50% Fibonacci level. Finally seeking solace toward the 0.7740 horizontal support zone.
On the flip side, a break above the 0.7860 confluence zone could invite fresh constructive bids back towards 0.7900. Next, the bulls would ask for February 24 highs near the 0.7950 region, followed by monthly highs of 0.8000 (February 25 high).
AUD/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
