AUD/USD technical analysis: Struggles to find acceptance above 50-day SMA, downside seems limited

Reviving safe-haven demand benefits the USD and prompts some profit-taking.
Set-up remains in favour of bullish traders and support prospects for dip-buying.

Haresh Menghani FXStreet

The AUD/USD pair continued with its struggle to find acceptance above 50-day SMA and for now, seems to have snapped five consecutive days of winning streak. The pair stalled its recovery move from multi-year lows near a resistance marked by 50% Fibo. level of the 0.7082-0.6677 downfall and retreated further on Tuesday.

Slightly overbought conditions on the 4-hourly chart seemed to be the only factor prompting some profit-taking amid a slight deterioration in the risk sentiment. Meanwhile, oscillators on the daily chart maintained their bullish bias and support prospects for some dip-buying interest amid growing US-China trade optimism.

Hence, it will be prudent to wait for a strong follow-through pullback, possibly back below the previous strong resistance breakpoint near the 0.6800 handle, before confirming that the corrective bounce might have already run out of the steam and positioning for the resumption of the prior bearish trajectory.

A sustained move beyond the 0.6875-80 region (50% Fibo. level) should pave the way for an extension of the recent upward trajectory, even beyond the 0.6900 handle, towards testing the next major barrier near the 0.6925 region - 61.8% Fibo. level.

AUD/USD daily chart

AUD/USD

Overview
Today last price	0.6855
Today Daily Change	-0.0008
Today Daily Change %	-0.12
Today daily open	0.6863

Trends
Daily SMA20	0.6773
Daily SMA50	0.6864
Daily SMA100	0.6911
Daily SMA200	0.7021

Levels
Previous Daily High	0.6876
Previous Daily Low	0.6837
Previous Weekly High	0.6862
Previous Weekly Low	0.6687
Previous Monthly High	0.6869
Previous Monthly Low	0.6676
Daily Fibonacci 38.2%	0.6861
Daily Fibonacci 61.8%	0.6852
Daily Pivot Point S1	0.6841
Daily Pivot Point S2	0.682
Daily Pivot Point S3	0.6802
Daily Pivot Point R1	0.688
Daily Pivot Point R2	0.6898
Daily Pivot Point R3	0.6919

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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