AUD/USD Price Analysis: Corrective pullback eyes 0.7210 hurdle

AUD/USD extends bounce off yearly low, refreshes intraday top.
Previous support from November 2020 guards immediate upside.
78.6% Fibonacci retracement, channel’s resistance appear as a tough nut to crack for bulls.
Bearish MACD, monthly descending channel keeps sellers hopeful.

Anil Panchal FXStreet

AUD/USD picks up bids to refresh daily high around 0.7145, up 0.20% intraday during early Wednesday. In doing so, the Aussie pair stretches the previous day’s rebound from an 11-month low amid an oversold RSI line.

However, the bearish MACD signals and monthly descending channel keeps sellers hopeful until the quote crosses the 0.7210 hurdle, including the stated channel’s upper line and 78.6% Fibonacci retracement (Fibo.) of November 2020 to February 2021 upside.

Ahead of that, the support-turned-resistance line from November 2020, near 0.7145, followed by September’s low near 0.7170, will act as immediate hurdles for the AUD/USD buyers to tackle.

It’s worth noting that a clear break above 0.7210 enables AUD/USD bulls to aim for July’s bottom surrounding 0.7270, as well as 61.8% Fibo. level surrounding 0.7380.

Alternatively, the 0.7100 round figure may offer immediate support before directing bears to the stated channel’s lower line, around 0.7070 at the latest.

In a case where the AUD/USD bears conquer the 0.7070 threshold, the 0.7000 psychological magnet and November 2020 bottom surrounding 0.6990 will be in focus.

AUD/USD: Daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	0.7141
Today Daily Change	0.0013
Today Daily Change %	0.18%
Today daily open	0.7128

Trends
Daily SMA20	0.7283
Daily SMA50	0.7337
Daily SMA100	0.7337
Daily SMA200	0.7511

Levels
Previous Daily High	0.7171
Previous Daily Low	0.7063
Previous Weekly High	0.7273
Previous Weekly Low	0.7111
Previous Monthly High	0.7537
Previous Monthly Low	0.7063
Daily Fibonacci 38.2%	0.7104
Daily Fibonacci 61.8%	0.713
Daily Pivot Point S1	0.707
Daily Pivot Point S2	0.7012
Daily Pivot Point S3	0.6961
Daily Pivot Point R1	0.7178
Daily Pivot Point R2	0.7229
Daily Pivot Point R3	0.7287

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.

EUR/USD weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.