AUD/USD Price Analysis: Grinds lower towards 0.6240 support
- AUD/USD fades bounce off weekly support line inside 1.5-month-old bearish channel.
- Firmer oscillators defend buyers during the first weekly gain in six, 21-DMA adds to the upside filters.
- Yearly low, 21-DMA act as additional trading filters.
AUD/USD prints mild losses while renewing its intraday low near 0.6265 during early Friday. In doing so, the Aussie pair retreats towards the one-week-old support line, after bouncing off the same on Thursday. Also keeping sellers hopeful is a downward-slopping trend channel established since September 07.
However, the recently bullish MACD signals, the first since mid-August, join nearly oversold RSI to challenge the AUD/USD pair’s downside past the aforementioned support line, around 0.6240 by the press time.
Even if the quote drops below 0.6240, the 0.6200 threshold and the yearly low of 0.6170 will act as extra challenges for the AUD/USD bears.
In a case where AUD/USD remains bearish past 0.6170, the aforementioned channel’s support line, close to 0.6050 at the latest, will be in focus during the south-run targeting the 0.6000 psychological magnet and April 2020 low near 0.5980.
Alternatively, recovery moves not only need to defy the bearish chart formation by crossing the 0.6305 immediate resistance but should also provide a daily closing beyond the 21-DMA of 0.6375 to convince buyers.
Following that, a run-up toward the monthly high of 0.6540 becomes imminent. It should be noted that the early September swing low near 0.6700 could lure the AUD/USD bulls past 0.6540.
AUD/USD: Daily chart
Trend: Gradual recovery 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.
