AUD/USD Price Analysis: Rebounds from 100-SMA to approach 0.7200
- AUD/USD refreshes weekly high during four-day uptrend, reversing early Asian losses.
- Successful beak of key SMAs, six-week-old trend line favor buyers.
- 200-SMA becomes a tough nut to crack for bulls, sellers need validation from 0.7060.
AUD/USD keeps a six-week-old resistance break, bouncing off 100-SMA to refresh daily high near 0.7190 during early Thursday morning in Asia.
In addition to the sustained recovery from the key SMA, not to forget a clear break of 50-SMA and descending trend line from October 29, bullish MACD signals also favor AUD/USD buyers.
That said, 38.2% Fibonacci retracement (Fibo.) level of October-December downside near 0.7210, seems an imminent target for the bulls.
However, the 50% Fibo level near 0.7275 and the 200-SMA figure of 0.7300 will challenge the pair’s upside afterward.
Alternatively, sellers need to conquer the 100-SMA level of 0.7160 to take fresh entries but a convergence of the 50-SMA and previous resistance line, around 0.7100 will challenge the further downside.
Following that, 0.7030 may probe the AUD/USD bears before directing them to the 0.7000-6990 key support zone, including lows marked during November 2020 and so far during December 2021.
AUD/USD: Four-hour 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.
