AUDUSD Price Analysis: Eases below 0.6500, inverse H&S in focus
- AUDUSD retreats from one-week-old horizontal resistance but keeps bullish Head-And-Shoulders formation intact.
- 50-SMA defends buyers before the latest swing low, bullish MACD signals favor upside momentum.
- Sustained break of 0.6515 appears necessary to confirm a rally.
AUDUSD snaps a two-day uptrend as it refreshes intraday low near 0.6470 during early Tuesday in Asia.
That said, the Aussie pair’s latest weakness could be linked to the quote’s failure to cross a one-week-old horizontal resistance near 0.6495-90.
However, the inverse Head-And-Shoulders bullish chart pattern joins the upbeat MACD signals to keep the AUDUSD buyers hopeful.
Even so, a successful break of the stated bullish chart pattern’s neckline, near 0.6515, appears necessary for the bulls to aim for September’s high near 0.6920. It should be noted that multiple hurdles surrounding 0.6550 could test the AUDUSD bulls between 0.6920 and 0.6515.
On the flip side, a sustained break of the 50-SMA support, around 0.6405 by the press time, becomes necessary for the AUDUSD bear’s conviction.
Following that, a one-month-old ascending support line, near 0.6285, will precede the monthly low near 0.6270 and the yearly bottom surrounding 0.6170 could gain the market’s attention.
Overall, AUDUSD remains on the bull’s radar but a clear break of 0.6515 appears necessary for the pair buyers to cheer the recent advances.
AUDUSD: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
