• AUD/USD reverses modest intraday downtick and hits a nearly two-week high on Tuesday.
  • The prevalent selling bias surrounding the USD remains supportive of the intraday uptick.
  • A breakout through the 0.6865-0.6860 confluence supports prospects for additional gains.

The AUD/USD pair attracts some dip-buying near the 0.6860 area on Tuesday and turns positive for the third straight day. The pair is currently placed near a two-week high, with bulls awaiting a sustained move beyond the 0.6900 round-figure mark.

The US dollar selling remains unabated through the first half of the European session and turns out to be a key factor acting as a tailwind for the AUD/USD pair. The uptick, however, lacks follow-through buying as investors keenly await the crucial US consumer inflation figures, due later today.

From a technical perspective, the emergence of fresh buying near the 0.6865-0.6860 confluence hurdle breakpoint supports prospects for further gains. The said area comprises the top end of a one-month-old descending channel and the 38.2% Fibonacci retracement level of the August-September decline.

This should now act as a pivotal point for intraday traders. Any subsequent pullback could be seen as a buying opportunity near the overnight swing low, around the 0.6825 area. This, in turn, should limit any further losses for the AUD/USD pair near the 0.6800 round figure, or the 23.6% Fibo. level.

A convincing break below the latter will suggest that the corrective bounce has run out of steam and shift the bias back in favour of bearish traders. The AUD/USD pair could then drop to the 0.6730 intermediate support en route to the 0.6700 mark and the YTD low, around the 0.6680 region.

On the flip side, sustained strength beyond the 0.6900 mark is likely to confront stiff resistance near the 100-day SMA, currently around the 0.6960 area. Some follow-through buying should pave the way for a further appreciating move and allow the AUD/USD pair to reclaim the 0.7000 psychological mark.

AUD/USD 4-hour chart

fxsoriginal

Key levels to watch

AUD/USD

Overview
Today last price 0.6898
Today Daily Change 0.0008
Today Daily Change % 0.12
Today daily open 0.689
 
Trends
Daily SMA20 0.6867
Daily SMA50 0.6896
Daily SMA100 0.6966
Daily SMA200 0.7115
 
Levels
Previous Daily High 0.69
Previous Daily Low 0.6824
Previous Weekly High 0.6877
Previous Weekly Low 0.6699
Previous Monthly High 0.7137
Previous Monthly Low 0.6835
Daily Fibonacci 38.2% 0.6871
Daily Fibonacci 61.8% 0.6853
Daily Pivot Point S1 0.6843
Daily Pivot Point S2 0.6796
Daily Pivot Point S3 0.6767
Daily Pivot Point R1 0.6918
Daily Pivot Point R2 0.6947
Daily Pivot Point R3 0.6994

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD declines below 0.6700 amid weak Aussie Retail Sales, China’s covid protests

AUD/USD declines below 0.6700 amid weak Aussie Retail Sales, China’s covid protests

AUD/USD is extending its decline below 0.6700, undermined by a resurgent safe-haven demand for the US Dollar amid a risk-off theme at the start of the week. China's covid protests and weak Australian Retail Sales add to the weight on the Aussie. 

AUDUSD News

EUR/USD tumbles toward 1.0300 amid risk aversion

EUR/USD tumbles toward 1.0300 amid risk aversion

EUR/USD is falling hard toward 1.0300 after kicking off the week’s trading with a downside gap, as the risk-off mood underpins the US Dollar’s demand during Monday’s Asian session. The downbeat comments from ECB  policymaker Makhlouf exert bearish pressure on the Euro. 

EUR/USD News

Gold snaps four-day uptrend below $1,750 as covid woes sour sentiment

Gold snaps four-day uptrend below $1,750 as covid woes sour sentiment

Gold price drops for the first time in five days while printing sizeable losses below $1,750 during early Monday. The yellow metal bears the burden of the market’s sour sentiment, amid intensifying Chinese covid woes, ahead of important data due later this week.

Gold News

Binance Coin: Two things need to happen for BNB to hit $450

Binance Coin: Two things need to happen for BNB to hit $450

Binance Coin price could be running out of gas to continue its massive rally. While the last five days have been exciting times for holders, the following days will need to be closely monitored. The threat of a downswing looms for BNB.

Read more

Week Ahead: Decisive week for the Dollar as PCE inflation and NFP reports coming up

Week Ahead: Decisive week for the Dollar as PCE inflation and NFP reports coming up

After the Thanksgiving downtime that generated some further weakness for the greenback, investors will be looking for fresh direction from the barrage of US economic data that will be dominating the agenda in the coming week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures