AUD/USD Price Analysis: Multiple hurdles set to test bulls above 0.7000
- AUD/USD renews intraday high during three-day recovery from multi-month low.
- Clear break of weekly falling trend line favors buyers amid firmer RSI.
- 13-day-old horizontal area comprising 100-SMA challenges buyers ahead of descending trend line from early April.
- Previous resistance line, weekly support to test pullback moves.
AUD/USD picks up bids to refresh daily top around 0.7010 heading into Tuesday’s European session.
In doing so, the Aussie pair justifies the previous day’s break of a weekly descending trend line, as well as a firmer RSI (14).
However, multiple hurdles from April 28, as well as the 100-SMA, stand ready to challenge the AUD/USD bulls between 0.7030 and 0.7055.
Also acting as the short-term key resistance is a downward sloping trend line from April 05, close to 0.7115.
Alternatively, the resistance-turned-support line, around 0.6950 by the press time, puts a floor under the short-term AUD/USD pullback.
Following that, a one-week-old rising support line, near the 0.6900 threshold and the latest multi-month bottom around 0.6830, marked the last week, will be important to watch.
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.
