AUD/USD Price Analysis: Retreats from 0.6780-90 resistance region
- AUD/USD snaps two-day winning streak by taking U-turn from three-week-old horizontal resistance.
- Firmer RSI, bullish MACD signals join ascending trend channel to keep buyers hopeful.
- 200-SMA, two-month-old ascending support line adds to the downside filters.
AUD/USD takes offers to renew intraday low near 0.6765 as traders await the key inflation numbers from China during early Friday.
In doing so, the Aussie pair reverses from a horizontal resistance area comprising multiple levels marked since November 15, between 0.6780 and 0.6790, to print the first daily loss in three. It’s worth noting that the quote is on the way to snapping a two-week uptrend on a weekly basis.
It’s worth noting, however, that the bullish MACD signals and firmer RSI joins a three-week-old ascending trend channel formation to keep AUD/USD buyers hopeful unless the quote stays beyond 0.6675 support.
Following that, the 200-SMA and an upward-sloping trend line from early October, respectively near 0.6610 and 0.6440, may lure the pair sellers.
Alternatively, AUD/USD buyers need a successful break of 0.6790, as well as sustained trading beyond the 0.6800 round figure to retake control.
Even so, the upper line of the stated channel, close to 0.6870 at the latest, will challenge the Aussie pair’s further upside.
Should the AUD/USD bulls manage to keep the reins past 0.6870, September’s high near 0.6915 will flash on their radar.
AUD/USD: Four-hour chart
Trend: Limited downside 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.
