AUD/USD Price Analysis: Recovery needs validation from 0.6700

  • AUD/USD extends bounce off short-term key support line.
  • Bullish crossover by important HMAs keeps buyers hopeful of overcoming the key hurdle.
  • Eight-day-old resistance line adds to the upside filters.
  • Bears need a successful break of 0.6630 to retake control.

AUD/USD picks up bids to pare recent losses around 0.6675 during Friday’s Asian session, reversing the previous day’s pullback from a weekly high.

In doing so, the Aussie pair recovers from an upward-sloping support line stretched from Tuesday while justifying the bull cross between the 50-Hour Moving Average (HMA) and the 100-HMA. Also favoring bulls is the receding bearish bias of the MACD indicator.

As a result, the AUD/USD rebound aims for the area comprising the 50-HMA and the 100-HMA, around 0.6700. However, the quote’s further upside appears difficult.

Even if the quote manages to rise past 0.6700, a one-week-old descending resistance line, close to 0.6755 by the press time, could act as the last defense of the AUD/USD bears.

It’s worth noting that the Aussie pair’s successful trading beyond 0.6755 will allow the pair buyers to challenge the early December swing high surrounding 0.6850.

Alternatively, a downside break of the aforementioned immediate support line, close to 0.6660 at the latest, could recall the AUD/USD bears.

However, the weekly low surrounding 0.6630 may act as a validation point for the Australian Dollar’s further weakness toward the late November swing low, around 0.6585.

AUD/USD: Hourly chart

Trend: Limited recovery expected


Source link