AUD/USD Price Analysis: Gravestone Doji, 200-DMA prods bounce off 0.6660 support
- AUD/USD ignores the previous day’s bearish candlestick to pare weekly losses.
- Repeated failures to cross 200-DMA, steady RSI tease sellers.
- Previous resistance line from early February acts as the last defense of Aussie pair buyers.
AUD/USD picks up bids to refresh intraday high near 0.6690 during early Friday morning. In doing so, the Aussie pair consolidates the weekly losses while bouncing off a two-week-old ascending support line.
As the quote’s latest rebound gains support from the bullish MACD signals, further upside towards the 200-DMA hurdle surrounding 0.6760 can’t be ruled out.
However, Thursday’s “Gravestone Doji” candlestick joins steady RSI (14) to challenge the AUD/USD buyers afterward.
In a case where the Aussie pair remains firmer past 0.6760, the December 2022 peak surrounding 0.6890, quickly followed by the 0.6900 threshold, could challenge the AUD/USD bulls before giving them control.
On the contrary, a downside break of the immediate fortnight-long support line, close to 0.6660 at the latest, isn’t an open invitation to the bears as multiple levels marked in the last four months around 0.6640-30, can challenge the sellers.
It’s worth noting that a downward-sloping previous resistance line from February 02, now support around 0.6575, acts as the last defense of the AUD/USD pair buyers, a break of which could drag the quote towards 2022 bottom surrounding 0.6160.
Overall, AUD/USD remains on the bear’s radar unless providing a clear upside break of 0.6900.
AUD/USD: Daily chart
Trend: Limited recovery 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.
