AUD/USD Price Analysis: Rebounds from 0.6730 support confluence
- AUD/USD prints mild gains around seven-week low, grinds near intraday high of late.
- Convergence of 100-DMA, three-month-old ascending support line restricts immediate downside amid nearly oversold RSI conditions.
- 200-DMA, three-week-old descending trend line challenge recovery moves amid bearish MACD signals.
AUD/USD licks its wounds while printing mild gains around 0.6735-40, bouncing off a seven-week low during early Monday’s sluggish session.
In doing so, the Aussie pair rebounds from a convergence of the 100-DMA and an upward-sloping support line from late November 2022. The corrective move also justifies the nearly oversold RSI (14).
However, the recovery remains elusive unless providing a daily closing beyond the 200-DMA hurdle of 0.6800.
Following that, a downward-sloping resistance line from February 02, close to 0.6850 at the latest, acts as the last defense of the AUD/USD bears, a break of which could propel prices towards the 0.7000 round figure.
Should the Aussie pair buyers keep the reins past 0.7000, tops marked during the mid-February, as well as the monthly high, surrounding 0.7030 and 0.7160 in that order, could lure the upside momentum.
Meanwhile, a daily closing below 0.6730 could quickly drag AUD/USD toward a late December 2022 low near 0.6630. However, lows marked during November 21 and 11, around 0.6585 and 0.6575 could challenge the bears afterward.
Overall, AUD/USD is likely to witness further downside unless marking a sustained break of 0.6850.
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.
