AUD/USD technical analysis: Struggles near 200-hour EMA/38.2% Fibo. confluence region
- The pair met with some aggressive supply amid fading trade optimism.
- The intraday set-up support prospects for further depreciating move.
The AUD/USD pair gained some strong follow-through traction on Friday and climbed to three-week tops in reaction to a positive outcome from the much-hyped US-China trade negotiations.
The pair, however, failed to make it through a resistance marked by 61.8% Fibonacci level of the 0.6895-0.6671 downfall and witnessed some aggressive selling on the first day of a new trading week.
The pair has now slipped below a confluence support comprising of 38.2% Fibo. level and 200-hour EMA, which might be seen as a key trigger for bearish traders and support prospects for further slide.
Hence, a subsequent fall, possibly towards testing 23.6% Fibo. level support near the 0.6720 region en-route 0.6700 round-figure mark, now looks a distinct possibility amid fading trade optimism.
On the flip side, the 0.6775-80 region (50% Fibo. level) now seems to act as an immediate resistance, which if cleared might assist the pair to make a fresh attempt towards conquering the 0.6800 mark.
Above the mentioned handle, the pair is likely to accelerate the momentum further towards the 0.6860 intermediate resistance before eventually darting to the recent swing highs, around the 0.6900 handle.
AUD/USD 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
