- AUD/USD pares the first weekly gain in three around the lowest levels in two months.
- Convergence of 100-EMA, one-month-old descending resistance line adds to the upside filters.
- Bullish MACD signals, RSI’s upward grind keeps pair buyers hopeful.
- Downside break of ascending support line from Wednesday appears crucial for bear’s return.
AUD/USD prints mild losses around the mid-0.6700s as bulls take a breather following the first weekly gain in three during early Monday. In doing so, the Aussie pair portrays the failure to cross the 50-bar Exponential Moving Average (EMA).
Even so, the bullish MACD signals and the RSI (14) rebound keeps the AUD/USD buyers hopeful unless the quote breaks a three-day-old support line, around 0.6720.
Following that, the monthly low near the 0.6700 round figure and the January 2023 low of 0.6687 can act as extra checks for the Aussie pair sellers before giving them control.
Should the AUD/USD bears keep the reins past 0.6687, the last December’s bottom surrounding 0.6630 may gain the market’s attention.
On the contrary, recovery moves need to cross the 50-EMA hurdle near 0.6775 to convince intraday buyers of the AUD/UDS pair.
However, a convergence of the 100-EMA and a downward-sloping resistance line from early February, around 0.6820-25 by the press time, appears a tough nut to crack for the pair buyers.
In a case where the AUD/USD bulls manage to keep the driver’s seat past 0.6825, the odds of witnessing a run-up toward the mid-February high of near 0.7030 can’t be ruled out. It should be noted that the 0.7000 round figure may act as a buffer between 0.6825 and 0.7030.
AUD/USD: Daily chart
Trend: Limited downside 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
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.