AUD/USD Price Analysis: Recovery needs validation from 0.6700
- AUD/USD extends bounce off short-term key support line.
- Bullish crossover by important HMAs keeps buyers hopeful of overcoming the key hurdle.
- Eight-day-old resistance line adds to the upside filters.
- Bears need a successful break of 0.6630 to retake control.
AUD/USD picks up bids to pare recent losses around 0.6675 during Friday’s Asian session, reversing the previous day’s pullback from a weekly high.
In doing so, the Aussie pair recovers from an upward-sloping support line stretched from Tuesday while justifying the bull cross between the 50-Hour Moving Average (HMA) and the 100-HMA. Also favoring bulls is the receding bearish bias of the MACD indicator.
As a result, the AUD/USD rebound aims for the area comprising the 50-HMA and the 100-HMA, around 0.6700. However, the quote’s further upside appears difficult.
Even if the quote manages to rise past 0.6700, a one-week-old descending resistance line, close to 0.6755 by the press time, could act as the last defense of the AUD/USD bears.
It’s worth noting that the Aussie pair’s successful trading beyond 0.6755 will allow the pair buyers to challenge the early December swing high surrounding 0.6850.
Alternatively, a downside break of the aforementioned immediate support line, close to 0.6660 at the latest, could recall the AUD/USD bears.
However, the weekly low surrounding 0.6630 may act as a validation point for the Australian Dollar’s further weakness toward the late November swing low, around 0.6585.
AUD/USD: Hourly 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.
