AUD/USD Price Analysis: Sellers snap two-day uptrend as 21-DMA resistance reigns
- AUD/USD takes offers to refresh intraday low, prints the first daily loss in three.
- RBA’s Lowe fails to impress hawks despite citing inflation woes.
- Failures to cross immediate hurdles, bearish MACD signals favor sellers.
- Two-month-old ascending support line, 50-DMA challenge further downside.
AUD/USD recalls bears, after a two-day absence, as it renews its intraday low near the mid-0.6900s as the Reserve Bank of Australia (RBA) Governor failed to impress policy hawks in his testimony early Wednesday.
Also read: RBA Lowe: Inflation is way too high, needs to come down
In doing so, AUD/USD takes offers to print the first daily loss in three while reversing from the 21-DMA hurdle. The downside move also gains support from the bearish MACD signals and downbeat RSI (14), not oversold.
It should be noted, however, that an upward-sloping support line from December 20, 2022, close to 0.6930 by the press time, restricts immediate declines of the AUD/USD pair.
Following that, the 50-DMA support of 0.6885 will precede the monthly low of 0.6855 to act as final defenses for the Aussie pair buyers before giving control to the AUD/USD bears.
In that case, the previous monthly low near 0.6730 could gain major attention.
Alternatively, a daily closing beyond the 21-DMA, around the 0.7000 round figure, can propel the AUD/USD prices towards the late January swing high near 0.7065 before highlighting the 0.7100 threshold as the key resistance.
During the quote’s run-up beyond 0.7100, the monthly high of 0.7157 will be crucial to watch as it holds the key to a rally targeting the June 2022 peak surrounding 0.7285.
AUD/USD: Daily 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.
