AUD/USD Price Analysis: Pullback appears unimpressive beyond 0.7085
- AUD/USD bulls retreat from seven-month high while probing five-day uptrend.
- Rising wedge bearish chart pattern, looming bear cross on MACD tease sellers.
- 100-SMA, six-week-old horizontal support add to the downside filters.
- Further upside could aim for June 2022 peak.
AUD/USD struggles for clear directions around the highest levels since June, marked the previous day, as it stays defensive near 0.7115 amid early Friday morning in Asia. In doing so, the Aussie pair also challenges the previous five-day winning streak and teases sellers by forming a rising wedge bearish chart pattern on the four-hour play.
Not only the rising wedge but the impending bear cross on the MACD also favors the odds of a pullback by the Aussie pair.
That said, the stated bearish pattern’s lower line, close to 0.7085 by the press time, appears the key as a break of which could confirm the rising wedge breakdown that theoretically suggests the downturn towards the 0.6800 mark.
However, the 100-SMA and multiple levels marked since mid-December 2022, respectively near 0.6950 and 0.6890, could challenge the further downside.
Meanwhile, recovery moves need to refresh the latest multi-month high, marked on Thursday around 0.7140, as well as the stated wedge’s top surrounding 0.7145, to recall the AUD/USD buyers.
Following that, a run-up toward the June 2022 high near 0.7285 can’t be ruled out.
Overall, AUD/USD buyers appear running out of steam but the bears have a bumpy road to track.
AUD/USD: Four-hour chart
Trend: Pullback 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.
