AUD/USD Price Analysis: Long-term EMA at 0.6810 acts as headwind to Aussie bulls
- AUD/USD remains firmer at the highest levels in seven weeks, mildly bid of late.
- 1.5-month-old ascending trend line, 200-EMA challenges Aussie buyers.
- Pullback moves can aim for 100-EMA but ascending support line from March becomes crucial for bear’s conviction.
AUD/USD clings to mild gains at the highest level in seven weeks, marked the previous day, making rounds to 0.6780-90 during early Friday. In doing so, the Aussie pair prints a four-day winning streak while justifying the bullish signals from the MACD indicator.
However, an upward-sloping resistance line from early March, near the 0.6800 round figure, guards the immediate run-up of the AUD/USD pair.
Following that, the 200-day Exponential Moving Average (EMA) level of around 0.6810 will be crucial for the Aussie buyers to tackle if they wish to keep the reins.
It’s worth noting that the RSI (14) line still has some gap before it hits the overbought territory, which in turn suggests the AUD/USD pair’s limited upside room.
In a case where the quote rises past 0.6810, the 0.7000 round figure and a mid-February high of around 0.7030 will be in the spotlight.
On the contrary, the 100-EMA level of 0.6760 can restrict pullback moves of the AUD/USD pair, a break of which can recall the 0.6700 psychological magnet to the chart.
Even so, the Aussie pair buyers should remain hopeful unless the quote offers a daily closing below a five-week-old ascending support line, close to 0.66303 at the latest.
AUD/USD: Daily chart
Trend: Limited 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.
