AUD/USD Price Analysis: Steadies around 0.7100 amid hidden bearish RSI divergence

AUD/USD seesaws around five-month high as bulls take a breather after four-day uptrend.
Higher highs on RSI (14) contrast with the lower high on prices to probe the bullish trend.
Overbought RSI conditions, seven-month-old horizontal hurdle also challenge buyers.
61.8% Fibonacci retracement, previous weekly high restrict immediate downside.

Anil Panchal FXStreet

AUD/USD pauses the four-day uptrend around the highest level since August 2022 as it makes rounds to 0.7100 during Thursday’s sluggish Asian session. Even so, the Aussie pair braces for the biggest weekly gains since early November.

The quote rose to the multi-month high on crossing the 61.8% Fibonacci retracement level of its April-October 2022 downside. However, the overbought RSI (14) seems to probe the buyers afterward.

Also challenging the upside bias is the hidden bearish RSI divergence, a condition where the price prints lower highs but the indicator prints higher highs.

As a result, the AUD/USD bulls should wait for a confirmation of the latest bullish trend. In doing so, the horizontal area comprising multiple highs marked since June 2022, near 0.7140 will be the key to watch.

Following that, a run-up towards the June 2022 high near 0.7285 can be expected. It’s worth noting that the 0.7200 round figure may act as an intermediate halt during the likely run-up.

Alternatively, pullback moves need to conquer the 61.8% Fibonacci retracement level, also known as the ‘golden ratio’, around 0.7090, to tease the AUD/USD bears.

Even so, the previous weekly high near 0.7065, could act as the additional downside filter before convincing the sellers to attack the 0.7000 psychological magnet.

AUD/USD: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	0.7105
Today Daily Change	0.0063
Today Daily Change %	0.89%
Today daily open	0.7042

Trends
Daily SMA20	0.689
Daily SMA50	0.6792
Daily SMA100	0.6646
Daily SMA200	0.6816

Levels
Previous Daily High	0.7058
Previous Daily Low	0.6993
Previous Weekly High	0.7064
Previous Weekly Low	0.6872
Previous Monthly High	0.6893
Previous Monthly Low	0.6629
Daily Fibonacci 38.2%	0.7033
Daily Fibonacci 61.8%	0.7018
Daily Pivot Point S1	0.7005
Daily Pivot Point S2	0.6967
Daily Pivot Point S3	0.694
Daily Pivot Point R1	0.7069
Daily Pivot Point R2	0.7096
Daily Pivot Point R3	0.7134

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.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.