AUD/USD Price Analysis: Bulls have the upper hand above one-month-old ascending trend-line

A combination of supporting factors pushed AUD/USD higher for the second straight day.
The overnight bounce from an ascending trend-line supports prospects for further gains.
A move beyond 100-DMA will reaffirm the constructive outlook and prompt fresh buying.

Haresh Menghani FXStreet

The AUD/USD pair built on the previous day's positive move and gained some follow-through traction for the second successive day on Wednesday. The pair maintained its bid tone through the first half of the European session and was last seen trading near a two-day high, around mid-0.7200s.

Retreating US Treasury bond yields undermined the US dollar, which, in turn, was seen as a key factor that provided a modest lift to the AUD/USD pair. Apart from this, a positive turnaround in the risk sentiment further benefitted the perceived riskier aussie and remained supportive.

From a technical perspective, this week's corrective slide from the highest level since November 19 stalled near an ascending trend-line extending from the key 0.7000 psychological mark. The aforementioned support, currently around the 0.7180-75 region should now act as a pivotal point.

Technical indicators on the daily chart have just started moving into positive territory. This, along with the emergence of dip-buying on Tuesday and the subsequent move up, favours bullish traders and supports prospects for further near-term appreciation.

A move back towards challenging the 100-day SMA barrier, just ahead of the 0.7300 round-figure mark, remains a distinct possibility. Some follow-through buying has the potential to lift the AUD/USD pair towards the 0.7340-45 area en-route the 0.7375-80 zone and the 0.7400 mark.

On the flip side, a convincing break below the ascending trend-line support, near the 0.7180-75 region, will shift the bias back in favour of bearish traders. The AUD/USD pair might then turn vulnerable to accelerate the fall back towards the 0.7100 round-figure mark.

The downfall could further get extended towards intermediate support near the 0.7085 horizontal zone before the AUD/USD pair eventually drops to 2021 low, around the 0.7000 mark.

AUD/USD daily chart

Levels to watch

AUD/USD

Overview
Today last price	0.7251
Today Daily Change	0.0011
Today Daily Change %	0.15
Today daily open	0.724

Trends
Daily SMA20	0.7192
Daily SMA50	0.7248
Daily SMA100	0.7287
Daily SMA200	0.7441

Levels
Previous Daily High	0.725
Previous Daily Low	0.7184
Previous Weekly High	0.7278
Previous Weekly Low	0.7204
Previous Monthly High	0.7278
Previous Monthly Low	0.6993
Daily Fibonacci 38.2%	0.7225
Daily Fibonacci 61.8%	0.7209
Daily Pivot Point S1	0.7199
Daily Pivot Point S2	0.7159
Daily Pivot Point S3	0.7133
Daily Pivot Point R1	0.7265
Daily Pivot Point R2	0.7291
Daily Pivot Point R3	0.7331

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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