AUD/USD Price Analysis: Bounces off six-week-old support towards 0.7200

AUD/USD portrays corrective pullback around weekly low, snaps four-day downtrend.
Short-term support break joins bearish MACD signals, downbeat RSI to favor sellers.
Bulls need validation from 0.7280 to retake control.

Anil Panchal FXStreet

AUD/USD picks up bids to refresh intraday high around 0.7190, up 0.11% on a day during Wednesday’s Asian session.

In doing so, the Aussie pair not only recovers from a one-week low flashed the previous day but also prints daily gains for the first time in five days.

The corrective pullback could be linked to the pair’s U-turn from an upward sloping trend line from early December. However, a clear downside break of the weekly support line joins bearish MACD signals and sluggish RSI to keep sellers hopeful.

That said, the latest recovery may aim for the previous support line near 0.7215 but monthly horizontal resistance near 0.7280 becomes the key hurdle to watch afterward.

Should the quote rises past 0.7280, the latest peak of 0.7315 and a descending resistance line from May, near 0.7400 will be crucial to watch.

On the flip side, the stated support line near 0.7170 precedes an ascending trend line from December 20, close to 0.7155, to limit short-term AUD/USD downside.

Following that, 61.8% Fibonacci retracement of December-January upside, near 0.7115, as well as December 20 trough near 0.7080, will challenge AUD/USD sellers.

AUD/USD: Four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	0.7188
Today Daily Change	0.0007
Today Daily Change %	0.10%
Today daily open	0.7181

Trends
Daily SMA20	0.7225
Daily SMA50	0.7198
Daily SMA100	0.7284
Daily SMA200	0.7421

Levels
Previous Daily High	0.7229
Previous Daily Low	0.7169
Previous Weekly High	0.7315
Previous Weekly Low	0.7148
Previous Monthly High	0.7278
Previous Monthly Low	0.6993
Daily Fibonacci 38.2%	0.7192
Daily Fibonacci 61.8%	0.7206
Daily Pivot Point S1	0.7157
Daily Pivot Point S2	0.7133
Daily Pivot Point S3	0.7097
Daily Pivot Point R1	0.7217
Daily Pivot Point R2	0.7253
Daily Pivot Point R3	0.7277

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.

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