AUD/USD Price Analysis: Doji on 4H probes corrective pullback below 0.7800
- AUD/USD fades recovery moves amid bearish MACD, candlestick formation.
- Sustained trading below 100-bar SMA also favors sellers.
- One-month-old support line restricts immediate downside, horizontal area from February 19 adds to the upside filters.
AUD/USD eases to 0.7743, fizzles the recovery moves from 0.7773, during early Monday. Even so, the quote prints 0.60% intraday gains ahead of the European session.
Although an upward sloping support line from early February triggered the quote’s bounce off a three-week-low, the pair’s inability to cross 100-bar SMA, coupled with the Doji on the four-hour (4H) chart keeps the bears hopeful.
However, the AUD/USD sellers will wait for a clear break below the stated support line, at 0.7709, also validating the downside moves with the 0.7700 threshold, before eyeing the previous month’s low near 0.7560.
During the fall, the early-February levels near 0.7650 may offer intermediate halts.
Alternatively, an upside clearance of 0.7775 will defy the candlestick suggesting trend reversal. Though, a successful break above 100-bar SMA level of 0.7790 will add strength to the quote’s run-up.
Following that, a short-term horizontal area around 0.7855-60 can test the AUD/USD bulls ahead of directing them to the previous month’s top surrounding the 0.8000 round-figure.
AUD/USD four-hour chart
Trend: Further weakness 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.
