AUD/USD Price Analysis: Bulls need validation from 0.7355, China data eyed
- AUD/USD struggles to keep Friday’s rebound from five-week low.
- Bearish MACD signals challenge buyers aiming monthly resistance line amid steady RSI.
- Sustained bounce off 61.8% Fibonacci retracement level keeps bulls hopeful.
- China Retail Sales, Industrial Production for October will offer fresh impulse.
AUD/USD fades Friday’s corrective pullback from the key Fibonacci retracement level, easing to 0.7330 during Monday’s Asian session.
The Aussie pair managed to bounce off the 61.8% Fibonacci retracement (Fibo.) of the August-October uptrend, around 0.7275, during the previous day. The recovery moves gained support from an uptick in RSI, suggesting further advances.
However, the MACD signals remain favorable to the bears and hence highlight the two-week-old descending trend line, around 0.7355, followed by the 100-DMA level of 0.7367, as crucial upside barriers.
Should the quote manage to cross the 100-DMA hurdle, the late October lows and the September month high, respectively around 0.7455 and 0.7480, would be the key to watch.
On the flip side, AUD/USD sellers will wait for a clear downside break of the stated Fibo. level near 0.7275 for fresh entries while the 0.7300 threshold may entertain short-term bears.
In a case where China data disappoint Aussie buyers and drag the quote below 0.7275, the pair prices may drop towards 0.7215 and September’s low of 0.7169.
AUD/USD: Daily chart
Trend: Pullback 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.
