AUD/USD Price Analysis: Retreats from 100-HMA but bulls remain hopeful above 0.6400
- AUD/USD pares the first daily gains in four but defends the bullish chart breakout.
- 100-HMA challenges rising wedge confirmation amid firmer RSI.
- Sustained trading above 200-HMA favors bulls to aim for October’s peak.
AUD/USD steps back from intraday high to 0.6415, after snapping a three-day downtrend, ahead of Tuesday’s European session. In doing so, the Aussie pair eases from the 100-HMA as the Aussie pair traders recollect the Reserve Bank of Australia’s (RBA) dovish rate hikes.
However, the quote still defends the early Asian session’s falling wedge breakout amid a firmer RSI (14), which in turn favors buyers. On the same line could be the pair’s successful trading above the 200-HMA.
That said, the 100-HMA level surrounding 0.6440 restricts the quote’s immediate upside ahead of the previous weekly top near 0.6525.
It should be noted, though, that multiple levels marked during late September and early October highlight 0.6540-50 as the short-term key hurdle to the north.
Meanwhile, the AUD/USD pair’s further weakness could aim for the resistance-turned-support line from the wedge, around 0.6395.
Following that, the 200-HMA and the stated wedge’s bottom line, close to 0.6375 and 0.6350, could challenge the AUD/USD bears.
In a case where the Aussie pair remains bearish past 0.6350, the odds of witnessing a south-run towards October’s low near 0.6170 can’t be ruled out.
AUD/USD: Hourly 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.
