AUD/USD Price Analysis: Bulls need 0.7300 breakout for re-entry
- AUD/USD stays depressed despite licking its wounds of late.
- 100-SMA, seven-week-old descending trend line challenge immediate recovery, RSI retreat keeps sellers hopeful as well.
AUD/USD consolidates the previous day’s losses, the first in four days, around 0.7240-45 during a lackluster Asian session on Friday.
The Aussie pair’s losses on Thursday pulled the quote back below the key resistance confluence comprising 100-SMA and a downward sloping trend line from July 06. The fall also took clues from the RSI line’s retreat from the overbought area.
Hence, the latest corrective pullback remains meaningless until crossing the stated key hurdle around 0.7300.
Following that, the monthly peak of around 0.7430 will be in focus. However, 50% and 61.8% Fibonacci retracement levels of July–August downtrend, respectively around 0.7350 and 0.7410, may offer intermediate halts during the rise.
Alternatively, the 0.7200 threshold precedes 0.7145-40 and the monthly low near 0.7100, also the lowest level since November 2020, to restrict short-term AUD/USD losses.
In a case where the sellers keep reins past 0.7100, June 2020 top surrounding 0.7060 will be in focus.
AUD/USD: Four-hour chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
