- The uptick remained well supported by renewed US-China trade optimism.
- Sustained move beyond 200-DMA needed to confirm near-term bullish bias.
The AUD/USD pair continued gaining some positive traction through the mid-European session on Tuesday and is currently challenging the upper bound of its recent trading range, around the 0.6925-30 region.
The mentioned region coincides with the 61.8% Fibonacci level of the 0.7082-0.6671 downfall and is closely followed by the very important 200-day SMA, which should now act as a key pivotal point for short-term traders.
Above the mentioned barrier, currently near the 0.6945 region, a fresh bout of short-covering has the potential to lift the pair further towards reclaiming the 0.70 psychological mark en-route the 0.7030-35 supply zone.
On the flip side, rejection from the current resistance zone might now find some support near the 0.6900 handle and is closely followed by 50% Fibo. level, which if broken might negate any near-term bullish bias.
Sustained weakness below the said support, around the 0.6880-75 region, might turn the pair vulnerable to accelerate the slide towards the 0.6820 region – nearing 38.2% Fibo. level – ahead of the 0.6800 handle.
The downward trajectory could further get extended towards testing 23.6% Fibo. level support, around the 0.6770-65 region, before the pair eventually heads towards challenging the 0.6700 round-figure mark.
AUD/USD daily chart
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