AUD/USD Price Analysis: Mildly offered below 0.7190 upside hurdle
|- AUD/USD remains pressured below short-term resistance, fails to extend Friday’s run-up.
- RSI, MACD lure bulls as the quote stays beyond previous resistance line, 100-SMA.
- 50-SMA adds to the downside filters, 0.7275 acts as important resistance.
AUD/USD struggles to extend the previous day’s upside momentum, down 0.13% around 0.7160 during Monday’s Asian session.
Even so, AUD/USD trades successfully past the five-week-old descending trend line and 50-SMA, taking rounds to 100-SMA recently. However, a fortnight-long horizontal area challenges the bulls as MACD shows traders’ indecision and RSI nears the overbought region, suggesting the need for a strong push to the north if buyers want to keep the reins.
Following that, a convergence of 200-SMA and 50% Fibonacci retracement (Fibo.) November-December fall, around 0.7270-75, will be in focus. During the run-up, November 19 swing lows near 0.7225-30 can act as a buffer.
On the downside, the resistance-turned-support line and 50-SMA, respectively close to 0.7120 and the 0.7100 threshold, could stop the sellers during a pullback.
Adding to the supports are 0.7060 and 0.7030 levels, a break of which will shift the market’s attention towards the key 0.7000-0.6990 area comprising lows marked during November 2020 and so far during December 2021.
AUD/USD: Four-hour chart
Trend: Further recovery expected
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.