AUD/USD Price Analysis: Portrays pre-NFP consolidation above 0.6650
- AUD/USD picks up bids to refresh intraday high, snaps three-day losing streak.
- Clear break of one-month-old ascending trend channel, bearish moving average crossover keeps sellers hopeful.
- US NFP may bolster recession woes and weigh on prices on matching downbeat forecasts.
AUD/USD pares weekly losses around 0.6680 as traders prepare for the US Nonfarm Payrolls (NFP) during Good Friday’s holiday-driven sluggish session. In doing so, the Aussie pair prints the first daily gains in four amid upbeat headlines from Australia’s major customer China.
Also read: China’s SAFE: Will fend off external financial market shocks and risks
However, the Reserve Bank of Australia’s (RBA) dovish play joins the recession woes and exerts downside pressure on the AUD/USD prices.
Also read: AUD/USD justifies risk-barometer status around 0.6670 as recession woes loom, US NFP eyed
Technically, the Aussie pair’s rejection of a one-month-old bullish channel and a bearish moving average crossover, signaled by the 50-DMA’s piercing of the 100-DMA from above, keep the AUD/USD sellers hopeful. Adding strength to the downside bias is the steady RSI (14) line.
That said, the quote’s latest rebound remains elusive unless it stays below the aforementioned channel’s lower line, close to 0.6690 by the press time.
Apart from the 0.6690 immediate hurdle, the 0.6700 round figure can also test the pair buyers before giving them control.
Even so, the 50-DMA, the 100-DMA and the top line of the stated channel, around 0.6785, 0.6800 and 0.6820 in that order, can challenge the AUD/USD buyers afterward.
Alternatively, an upward-sloping support line from the last November, close to 0.6620 by the press time, puts a floor under the AUD/USD prices.
Following that, the previous monthly low of 0.6564, also the Year-To-Date (YTD) bottom, will gain the market’s attention.
AUD/USD: Daily chart
Trend: Further 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.
