AUD/USD Price Analysis: Further upside hinges on 0.6355 breakout
- AUD/USD retreats from intraday high during two-day uptrend.
- Bullish MACD signals, firmer RSI keeps buyers hopeful to overcome six-week-old bearish channel.
- Resistance-turned-support restricts immediate downside ahead of the yearly low.
AUD/USD grinds higher past 0.6300, seesaws around 0.6310-15 during Tuesday’s initial European session, as buyers approach the short-term key hurdle.
That said, a clear upside break of the eight-day-old previous resistance line, now support near 0.6280, keeps buyers hopeful.
However, a downward-sloping trend channel since early September, between 0.6055 and 0.6355, challenges the AUD/USD buyers of late.
Even so, the bullish MACD signals and recently firmer RSI, not overbought, suggests the Aussie pair’s upside break of the 0.6355 hurdle.
Following that, the 100-SMA level surrounding 0.6390 could act as a buffer during the run-up targeting the monthly high near 0.6540 and the 200-SMA resistance around 0.6560.
On the contrary, pullback moves remain elusive unless the AUD/USD prices stay above the resistance-turned-support trend line of 0.6280.
In a case where the pair sellers dominate past 0.6280, a quick fall toward Friday’s bottom surrounding 0.6200 can’t be ruled out.
Though, the yearly low and the stated channel’s support line, respectively near 0.6170 and 0.6055, will gain the market’s attention.
Overall, AUD/USD pair is likely to regain the buyer’s confidence should I manage to stay beyond 0.6355.
AUD/USD: Four-hour chart
Trend: Limited upside 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.
