- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD clings to recovery gains near 0.6550 on weaker USD, upbeat mood
AUD/USD holds sizeable gains near 0.6550 in the Asian session on Monday. A sharp pullback in the US bond yields prompts some US Dollar profit-taking after US President-elect Trump named Scott Bessent as Treasury Chief. Moreover, the upbeat market mood supports the risk-sensitive Aussie.
USD/JPY tumbles over one-big figure toward 153.50
USD/JPY slides back closer to 153.50 in the Asian session on Monday. Retreating US Treasury bond yields drags the US Dollar away from a two-year top high and drives flows towards the lower-yielding Japanese Yen, though the BoJ uncertainty could limit losses for the pair.
Gold price corrects to near $2,700 on sliding US yields, US Dollar
Gold price correcxts sharply to $2,700 from a near two-week highs of $2,721 early Monday. The US Dollar pulls back from a two-year high alongside retreating US bond yields and benefits the commodity while a positive risk tone amid a likely ceasefire between Israel and Lebonan also dents the safe-haven metal.
Elections, inflation, and the bond market
The Federal Reserve believes inflation is no longer a concern for consumers and the time has come to ensure the rate of change of prices does not decline any further.
Read more
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.