- AUD/USD stalls intraday positive move near 61.8% Fibo. resistance.
- Renewed trade pessimism prompted some selling around the Aussie.
The AUD/USD pair added to the previous session's strong gains and gained some follow-through traction on Tuesday. A sustained move beyond the 100-day SMA barrier was seen as a key trigger for bullish traders and lifted the pair to over three-week tops, levels just above mid-0.6800s.
However, the latest trade pessimism, led by the US President Donald Trump's comments, exerted some fresh pressure on the China-proxy Australian dollar and kept a lid on the pair's momentum near a resistance marked by 61.8% Fibonacci level of the 0.6930-0.6754 recent downfall.
Slightly overbought conditions on hourly charts also seemed to be one of the key factors contributing to the pair's intraday pullback of around 20-25 pips. Meanwhile, oscillators on the daily chart have just started gaining positive traction and support prospects for a further near-term positive move.
Given that the Reserve Bank of Australia (RBA) held back from offering any hints about any further rate cuts at its latest policy meeting earlier this Tuesday, any subsequent slide back towards the 100-DMA, coinciding with 38.2% Fibo. level might still be seen as a buying opportunity.
Failure to defend the mentioned confluence support, around the 0.6820 region, will negate the constructive set-up and prompt some aggressive technical selling. The pair then might turn vulnerable to slide below the 23.6% Fibo. level, near the 0.6795 region, back towards last week's swing low, around the 0.6760 region.
AUD/USD daily chart
|Today last price||0.6839|
|Today Daily Change||0.0013|
|Today Daily Change %||0.19|
|Today daily open||0.6826|
|Previous Daily High||0.6826|
|Previous Daily Low||0.6762|
|Previous Weekly High||0.68|
|Previous Weekly Low||0.6754|
|Previous Monthly High||0.6929|
|Previous Monthly Low||0.6754|
|Daily Fibonacci 38.2%||0.6802|
|Daily Fibonacci 61.8%||0.6786|
|Daily Pivot Point S1||0.6783|
|Daily Pivot Point S2||0.674|
|Daily Pivot Point S3||0.6718|
|Daily Pivot Point R1||0.6847|
|Daily Pivot Point R2||0.6869|
|Daily Pivot Point R3||0.6912|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.