AUD/USD Price Analysis: Further upside needs validation from 0.7050-55 resistance confluence


  • AUD/USD picks up bids to renew intraday high during three-day uptrend.
  • Convergence of one-week-old bullish channel’s top line, ascending trend line from December 01 challenge buyers.
  • Nearly overbought RSI restricts further upside of the Aussie pair.
  • Bears remain off the table unless witnessing clear downside break of 100-SMA.

AUD/USD bulls keep the reins for the third consecutive day around 0.7030-35 during early Tuesday. In doing so, the Aussie pair stays inside a one-week-long ascending trend channel while justifying a firmer RSI (14).

It should be noted, however, that a seven-week-old upward-sloping resistance line joins the stated bullish channel’s top line near 0.7050-55 to pose a serious threat to the current advances.

Adding strength to the fears of the AUD/USD bulls is the RSI (14) line that approaches the overbought territory and suggests a pullback.

In a case where the Aussie buyers manage to cross the 0.7055 resistance confluence, the previous weekly high near 0.7065 may act as the last defense of the bears before directing the quote towards the August 2022 peak surrounding 0.7140.

Alternatively, pullback moves may initially aim for the 0.7000 psychological magnet and remain less harmful to the bullish trend unless breaking the short-term rising channel’s support line, close to 0.6970 at the latest.

Following that, the 100-SMA and the previous monthly high could challenge the AUD/USD pair sellers around 0.6900 and 0.6890 in that order before giving them control.

AUD/USD: Four-hour chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price 0.7036
Today Daily Change 0.0010
Today Daily Change % 0.14%
Today daily open 0.7026
 
Trends
Daily SMA20 0.6875
Daily SMA50 0.6786
Daily SMA100 0.6643
Daily SMA200 0.6818
 
Levels
Previous Daily High 0.704
Previous Daily Low 0.696
Previous Weekly High 0.7064
Previous Weekly Low 0.6872
Previous Monthly High 0.6893
Previous Monthly Low 0.6629
Daily Fibonacci 38.2% 0.7009
Daily Fibonacci 61.8% 0.699
Daily Pivot Point S1 0.6978
Daily Pivot Point S2 0.6929
Daily Pivot Point S3 0.6898
Daily Pivot Point R1 0.7058
Daily Pivot Point R2 0.7089
Daily Pivot Point R3 0.7137

 

 

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