AUD/USD Price Analysis: Bulls face resistance near 0.7760 multi-week high
- AUD/USD remains under pressure in the early European session.
- Pair heads toward weekly losses after touching 0.7780.
- If price trades decisively below session’s low, more downside on the cards.
The AUD/USD pair remains on track for weekly losses on Friday. The pair moves in a very narrow trading band consisting of 10-pip movements.
At the time of writing, the AUD/USD pair is trading at 0.7754, down 0.26% on the day.
AUD/USD 4-hour chart
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On the 4-hour chart, the pair has been accumulating below the descending trend line from the high of 0.7892. The bearish sloping line acts as a defense for the bulls as price loses upside momentum while approaching the trend line for the last four sessions.
If price breaks below the session’s low at 0.7751, then the first stop would be located in the vicinity of Wednesday’s closing price near the 0.7720 area,
The Moving Average Convergence Divergence (MACD) indicator reads below the midline with a neutral stance. If it follows the downward trend, then it would bring the low of May 4 at 0.7674 back into the picture.
Alternatively, if price makes a sustained move above the 0.7760 mark, then it could aim for the previous day’s high at 0.7782. As it also coincides with an upside break of the downward sloping line, that would negate the prevailing trend.
The next area of resistance for market participants would be traced back to Tuesday's high at 0.7814 followed by the 0.7840 horizontal resistance level.
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.
