- AUD/USD edged higher through the early European session and refreshed daily tops.
- The technical set-up supports prospects for a further near-term appreciating move.
- Bulls eyeing a move beyond 200-hour SMA/descending trend-line confluence region.
The AUD/USD pair built on its steady intraday move up and refreshed daily tops in the last hour, with bulls now looking to extend the momentum further beyond the 0.6900 mark.
Any subsequent positive move is likely to confront a stiff resistance near a descending trend-line, around the 0.6915-20 region, extending from YTD tops. The mentioned barrier coincides with 200-hour SMA and should now act as a key pivotal point for short-term traders.
A convincing breakthrough might be seen as a fresh trigger for bullish traders and lift the pair back towards weekly tops, around the 0.6975 region. The momentum could then lift the pair beyond the 0.7000 psychological mark, back towards retesting 10-month tops, around the 0.7065 region.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and have started gaining positive traction on hourly charts. This, in turn, adds credence to the constructive set-up and supports prospects for a further near-term appreciating move for the AUD/USD pair.
On the flip side, weakness back below the 0.6875 level now seems to drag the pair back towards the daily swing lows, around the 0.6935 horizontal support. Failure to defend the mentioned support will negate any near-term bullish outlook and prompt some aggressive technical selling.
AUD/USD 1-hourly chart
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Technical levels to watch
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