AUD/USD Technical Analysis: Bulls defend 50-hour SMA, await a sustained move beyond mid-0.7100s

   “¢   Last week’s strong rebound from almost a decade low remained capped near mid-0.7100s, with bulls struggling to sustain/build on the momentum further beyond 61.8% Fibo. level of the early Dec.- early Jan. slump.

   “¢   Today’s softer than expected Aussie trade balance data, coupled with a modest USD rebound prompted some profit-taking at higher levels, though the optimism over a possible US-China trade deal helped limit downside.  

   “¢   The pair found some support near 50-hour SMA and the fact that technical indicators on hourly charts have managed to hold in the positive territory further support prospects for an extension of the ongoing up-move.

   “¢   Moreover, oscillators on the daily chart have just started gaining positive traction and add credence to the constructive set-up, albeit a sustained move beyond mid-0.7100s is needed to reaffirm the positive outlook.

   “¢   Detailed information about the latest round of US-China trade talks and the US President Donald Trump’s address to the nations might influence the broader market sentiment and provide some fresh directional impetus.

AUD/USD 1-hourly chart