AUD/USD Price Analysis: Corrective bounce remains elusive below 0.6700
- AUD/USD picks up bids to recover from fortnight-old horizontal support to snap two-day downtrend.
- Short-term resistance line, 200-HMA prod immediate upside even as RSI rebound, bullish MACD signal favor intraday Aussie buyers.
- One-week-long horizontal region act as the last defense of Aussie pair sellers.
AUD/USD refreshes intraday high near 0.6665 as it bounces off short-term key support to print the first daily gains in three amid early Monday. In doing so, the Aussie pair also justifies the RSI (14) line’s rebound from the oversold territory.
It’s worth noting, that the bullish MACD signals also favor the AUD/USD pair’s U-turn from a two-week-old horizontal support zone surrounding 0.6640.
However, the 61.8% Fibonacci retracement level of the pair’s run-up from April 28 to May 10, close to 0.6670, precedes a downward-sloping resistance line from May 10, near 0.6680 at the latest, to restrict short-term AUD/USD rebound.
Even if the AUD/USD pair rises past 0.6680, the 200-HMA and a horizontal area comprising multiple levels marked since May 05, close to 0.6750, can challenge the buyers before giving them control.
Alternatively, a downside break of the aforementioned horizontal support near 0.6640 won’t hesitate to challenge the late April swing low of around 0.6575.
Following that, the yearly low marked in March around 0.6565 may act as an extra filter towards the south.
Overall, the AUD/USD pair is likely to keep the latest recovery but the upside room appears limited.
AUD/USD: Hourly chart
Trend: Limited recovery 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.
