- AUD/USD rebounds from 0.6865-70 support confluence to consolidate biggest daily loss in two weeks.
- Convergence of head-and-shoulders’ neckline, two-month-old ascending trend line challenges bears.
- Buyers need validation from 21-DMA to retake control.
AUD/USD grinds near intraday high surrounding 0.6915 as it reverses the losses post Australian employment data release during early European morning on Thursday.
In doing so, the Aussie pair portrays a recovery move from the 0.6865-70 support confluence that encompasses the lower line of the six-week-old head-and-shoulders (H&S) bearish chart pattern and a two-month-old ascending trend line.
It’s worth noting, however, that the bearish MACD signals and the steady RSI (14) line join the Aussie pair’s sustained trading below the 21-DMA to challenge the bullish bias unless the quote rises past the immediate DMA hurdle surrounding the 0.7000 psychological magnet.
Even so, the weekly near 0.7030 and the monthly peak of 0.7157 could challenge the AUD/USD bulls afterward.
In a case where the AUD/USD buyers remain in the driver’s seat past 0.7157, the May 2022 high near 0.7285 will be on their radars.
On the contrary, a successful downside break of 0.6865 key support level is necessary for the Aussie pair bears to keep the reins.
Following that, the 200-DMA surrounding 0.6800 and the late 2022 low near 0.6630 may act as validation points during the theoretical south-run targeting the 0.6500 round figure.
Overall, AUD/USD remains bearish but the downside move needs validation from 0.6865.
AUD/USD: Daily chart
Trend: Limited recovery expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
NZD/USD hits fresh seven-week lows below 0.6100 after RBNZ's expected 50 bps rate cut
NZD/USD hits fresh seven-week lows near 0.6100 after the Reserve Bank of New Zealand (RBNZ) announced on Wednesday that it lowered the Official Cash Rate (OCR) by 50 basis points (bps) from 5.25% to 4.75%, leaving the door ajar for further rate cuts.
AUD/USD bounces to 0.6750 amid risk-on mood
AUD/USD is off three-week lows, trading near 0.6750 in Wednesday's Asian trading. The pair takes advantage of the risk-on mood and a pause in the US Dollar advance, as traders turn their attention to the Chinese stimulus prospects and the Fed Minutes for fresh trading impetus.
Gold price struggles to lure buyers amid smaller Fed rate cut bets
Gold price struggles to capitalize on the previous day's modest bounce from the vicinity of the $2,600 mark, during the Asian session on Wednesday. Traders have been scaling back their expectations for a more aggressive policy easing by the Fed, which continues to act as a tailwind for the USD and caps the upside for the non-yielding yellow metal.
Rising treasury yields attract Dollar interest
The Dollar Index has been on an upward trajectory since late September. Still, the currency market has been late in joining the move in US long-term bonds, where yields are rising following the Federal Reserve's decisive easing.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.