AUD/USD Price Analysis: Recovery approaches 0.6800 but bears remain hopeful
- AUD/USD picks up bids to extend the previous day’s rebound from two-month-old support.
- Impending bull cross on the MACD hints at further upside momentum.
- Monthly resistance line, 50-DMA restricts short-term advances, bears could aim for 0.6530 support confluence.
AUD/USD prints a two-day rebound from an upward sloping support line from July, grinding higher around 0.6760 during early Thursday morning in Europe.
The Aussie pair’s latest recovery also takes clues from the firmer MACD signals to keep buyers hopeful.
However, the 0.6800 threshold and the monthly descending resistance line near 0.6830 could challenge the AUD/USD bulls before directing them to the 50-DMA hurdle surrounding 0.6890.
Should the quote manages to stay firmer past the 50-DMA, the late August swing high near 0.7010 and the previous monthly peak of 0.7136 will gain the buyer’s attention.
On the contrary, pullback moves may have to conquer the aforementioned support line, as well as the yearly low, respectively around 0.6710 and 0.6680, to convince AUD/USD bears.
Following that, a south-run towards the four-month-old downward sloping support line and the 61.8% Fibonacci Expansion (FE) of April-August moves, near 0.6530, can’t be ruled out.
To sum up, AUD/USD is likely to witness short-term upside moves but the overall bearish trend remains intact.
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.
