AUD/USD Price Analysis: Retreats from adjacent resistance line near 0.6785
- AUD/USD fades bounce off 50-HMA amid failures to cross three-day-old descending resistance line.
- Looming bear cross on MACD keeps sellers hopeful but 200-HMA is a tough nut to crack for sellers.
- Bulls need validation from 0.6800 to retake control.
AUD/USD snaps a two-day uptrend as it retreats from a short-term downward-sloping resistance line during early Friday. Even so, the sluggish MACD and holiday mood in the market restricts the Aussie pair’s downside and hence the quote remains mildly offered near 0.6770 by the press time.
It should be observed that the MACD is likely teasing the bears, despite being sidelined of late, which in turn joins the quote’s failure to cross the immediate hurdle to keep the sellers hopeful.
However, the 50-HMA level surrounding 0.6755 restricts the AUD/USD pair’s immediate downside.
Should the quote breaks the immediate HMA support, traders will pay attention to the key downside level of 0.6718, comprising the 200-HMA, a break of which could quickly drag the Aussie pair towards the monthly low of 0.6629 marked in the last week.
Alternatively, recovery moves need to cross the descending trend line from Wednesday, around 0.6785, to push back the bearish bias.
Even so, the weekly top surrounding the 0.6800 round figure acts as an extra filter to the north before welcoming the AUD/USD bulls.
Overall, AUD/USD remains sidelined even as the bears struggle to retake control.
AUD/USD: Hourly chart
Trend: Sidelined
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.
