AUD/USD Price Analysis: Corrective pullback fades below 0.7540 resistance confluence
- AUD/USD consolidates the heaviest gains in a month below the key short-term hurdle.
- 50-SMA, 13-day-old resistance line guard immediate upside, bearish Doji keeps sellers hopeful.
AUD/USD fades Friday’s bounce off yearly low, down 0.10% intraday around 0.7520, during Monday’s Asian session. In doing so, the quote justifies the bearish candlestick formation while easing below a convergence of 50-SMA and a short-term key descending trend line.
The quote’s latest pullbacks signal return of the 0.7500 threshold but any further downside will be tested by the previous month’s low around 0.7480-75, not to forget the latest yearly low surrounding 0.7445, flashed on Friday.
It should, however, be noted that August 2020 tops surrounding 0.7415 and the 0.7400 psychological magnet will be tough nuts to crack for AUD/USD bears.
On the flip side, an upside clearance of the 0.7540 resistance confluence will escalate Friday’s recovery moves to late June’s swing high near 0.7620.
In a case where AUD/USD prices remain firm beyond 0.7620, the mid-June lows near 0.7675 and the 0.7800 round figure will lure the bulls afterward.
AUD/USD: Four-hour 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.
