AUD/USD Price Analysis: Retreats towards 0.7500 key support
- AUD/USD remains on the back foot amid firmer US dollar.
- 50-SMA, 13-day-old ascending trend line challenges short-term declines.
- Bearish MACD, rising resistance line from October 12 keep sellers hopeful.
AUD/USD drops back towards 0.7500, down 0.03% intraday around 0.7515 during Monday’s Asian session. In doing so, the quote fades Friday’s bounce off a convergence of a two-week-long support line and 50-SMA amid bearish MACD signals.
Also keeping sellers hopeful of breaking the 0.7500 support confluence is the bear’s gradual tightening of the grips as portrayed by the pair’s late October moves compared to MACD and signal lines’ behavior.
Hence, the quote is likely to break the 0.7500 support and aim for October 27 swing low near 0.7450.
It should be noted, however, that a join of 100-SMA and a bit broader support line from late September, around 0.7440, will challenge the AUD/USD weakness afterward.
Alternatively, recovery moves may aim for 0.7540 before heading towards the short-term resistance line near 0.7460.
However, a sustained run-up past 0.7560 enables the AUD/USD bulls to challenge the late June’s swing high around 0.7620.
AUD/USD: Four-hour chart
Trend: Further weakness 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.
