AUD/USD Price Analysis: Defend 50% Fibo. support, retakes 0.6700 mark on softer USD

AUD/USD regains positive traction on Tuesday and draws support from a softer USD.
Repeated failures to find acceptance below the 50% Fibo. level warrant caution for bears.
A sustained strength beyond the 0.6730 area will negate any near-term negative outlook.

Haresh Menghani FXStreet

The AUD/USD pair once again find some support near the 50% Fibonacci retracement level of the May-June rally and attracts fresh buying during the Asian session on Tuesday. Spot prices surge back above the 0.6700 round figure in the last hour, though any meaningful upside still seems elusive.

The US Dollar (USD) continues with its struggle to make it through the 50-day Simple Moving Average (SMA) and remains on the defensive for the second straight day, which, in turn, is seen lending some support to the AUD/USD pair. That said, the Federal Reserve's (Fed) hawkish outlook, along with worries about a global economic downturn, could act as a tailwind for the safe-haven buck and cap gains for the risk-sensitive Aussie.

From a technical perspective, bearish traders need to wait for a sustained break and acceptance below the 50% Fibo. level before placing fresh bets. Given that oscillators on the daily chart are holding in the negative territory, the AUD/USD pair might then accelerate the fall towards the 61.8% Fibo. support, around the 0.6625 region. This is followed by the 0.6600 mark, which if broken decisively will set the stage for a further depreciating move.

On the flip side, any subsequent move up is more likely to confront stiff resistance near the 38.2% Fibo. level, around the 0.6730 zone. A sustained strength beyond will suggest that the recent corrective decline from the 0.6900 mark, or a nearly four-month high, has run its course and shift the bias in favour of bullish traders. The AUD/USD pair might then aim to reclaim the 0.6800 round figure, which coincides with the 23.6% Fibo. level.

AUD/USD daily chart

Key levels to watch

AUD/USD

Overview
Today last price	0.6704
Today Daily Change	0.0029
Today Daily Change %	0.43
Today daily open	0.6675

Trends
Daily SMA20	0.6711
Daily SMA50	0.668
Daily SMA100	0.6712
Daily SMA200	0.6692

Levels
Previous Daily High	0.6694
Previous Daily Low	0.6668
Previous Weekly High	0.6886
Previous Weekly Low	0.6663
Previous Monthly High	0.6818
Previous Monthly Low	0.6458
Daily Fibonacci 38.2%	0.6678
Daily Fibonacci 61.8%	0.6684
Daily Pivot Point S1	0.6664
Daily Pivot Point S2	0.6653
Daily Pivot Point S3	0.6638
Daily Pivot Point R1	0.669
Daily Pivot Point R2	0.6705
Daily Pivot Point R3	0.6717

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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