- Renewed hopes of a US-China trade deal helped ease the recent bearish pressure.
- The set-up warrants some caution before positioning for any meaningful recovery.
Having found some support near 61.8% Fibonacci level of the 0.6671-0.6930 recovery move, the pair managed to gain some positive traction on Friday amid renewed hopes of a US-China trade deal.
Bulls, however, seemed struggling to capitalize on the momentum further beyond the 0.6800 handle, which coincides with 50% Fibo. level and should act as a key pivotal point for short-term traders.
Any subsequent move beyond the mentioned handle could get extended towards the 0.6820 horizontal zone en-route 38.2% Fibo. level resistance near the 0.6835-40 region, nearing 100-day SMA.
However, technical indicators on 4-hourly/daily charts maintained their bearish bias and thus, warrant some caution before positioning for any strong follow-through recovery in the near term.
On the flip side, the 0.6770 region (61.8% Fibo.) might continue to act as immediate support, which if broken might turn the pair vulnerable to accelerate the slide towards the 0.6700 round-figure mark.
AUD/USD Daily chart
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