AUD/USD Price Analysis: Under pressure, but risks remain skewed to the upside
- AUD/USD's daily chart maintains bullish bias despite the minor pullback.
- The MACD histogram shows the strongest bullish bias in five months.
While the AUD/USD pair is currently trading in the red, the losses could be short-lived, as a widely-tracked technical indicator shows strongest bullish bias since June.
The pair is trading at 0.7264 at press time, representing a 0.25% drop on the day.
The daily chart MACD histogram, an indicator used to identify trend changes and trend strength, is producing higher bars above the zero line, a sign of the strengthening of the bullish momentum. More importantly, the latest bar is the biggest since June, meaning the bullish bias is strongest in five months.
Further, the 14-day relative strength index is reporting a bullish bias with an above-50 print.
Lastly, the descending triangle breakout confirmed earlier this week is still valid.
As such, the odds appear stacked in favor of a test of resistance at 0.7342 (Sept. 15 high).
Daily chart
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Trend: Bullish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
