AUD/USD Price Analysis: Bulls need 18-day-old resistance break to aim for 0.7800
- AUD/USD struggles to keep previous day’s recovery moves.
- 200-SMA guards immediate upside, weekly trend line tests bears.
- Sluggish MACD, Momentum suggest extended sideways grind around mid-0.7700s.
AUD/USD portrays a sluggish move around 0.7750 during Friday’s Asian session. In doing so, the Aussie pair fails to extend Thursday’s run-up beyond 200-SMA and a descending resistance line from May 18. However, lack of Momentum and subdued MACD signals restrict the pair’s immediate moves.
Given the strong hurdles around 0.7755 and 0.7765, represented by the 200-SMA and stated resistance line, coupled with the downbeat oscillators, AUD/USD may witness a pullback towards 0.7700.
During the moves, an ascending support line from June 03, near 0.7725, will precede the latest range support around 0.7675 to restrict short-term declines.
Alternatively, an upside clearance of 0.7765 will quickly propel the quote towards the 0.7800 trheshold.
It’s worth noting that the AUD/USD upside past 0.7800, will have a bumpy road as 0.7820 and 0.7835 will probe the buyers before directing them to early May top near 0.7895 and then to the 0.7900 round-figure.
Overall, AUD/USD struggles for a clear direction and hence traders should wait for a clear break for fresh impetus.
AUD/USD four-hour chart
Trend: Sideways
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.
