AUD/USD Price Analysis: Snaps three-day uptrend as 21-EMA prods bulls near 0.6700
- AUD/USD holds lower grounds near intraday bottom after reversing from 21-EMA.
- Trendline breakout, bullish MACD signals favor buyers despite the latest retreat.
- Bulls need validation from 0.6780-85 resistance confluence to retake control.
AUD/USD prints the first daily loss in four around 0.6700 during early Tuesday morning in Europe as the 21-day Exponential Moving Average (EMA) challenges the buyers.
Even so, the Aussie pair’s successful trading beyond the previous resistance line from early February, near 0.6625 by the press time, join the bullish MACD signals to keep the buyers hopeful.
That said, a clear upside break of the 21-EMA, around 0.6720 by the press time, could direct the AUD/USD buyers towards the 0.6780-85 resistance confluence including 100-EMA, 50-EMA and 38.2% Fibonacci retracement of October 2022 to February 2023 upside.
Hence, the AUD/USD pair appears to remain sidelined between 0.6780-85 resistance and 0.6625 resistance-turned-support line.
It should be noted that a sustained break of 0.6785 could aim for the mid-February high surrounding 0.7030 wherein the 0.7000 round figure and early February’s low of 0.6855 may act as buffers.
Alternatively, a downside break of the stated trend line support, previous resistance around 0.6625, may aim for the 0.6600 round figure before approaching the monthly low of 0.6564.
Even if the quote drops below 0.6564, the 61.8% Fibonacci retracement, also known as the golden Fibonacci ratio, could challenge the AUD/USD bears around 0.6545.
To sum up, AUD/USD is likely to grind higher despite the latest retreat.
AUD/USD: Daily chart
Trend: Recovery 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.
