- AUD/USD fades Wednesday’s corrective pullback, eases from intraday high.
- Weekly trend line breakout, sustained trading above 50-day EMA favor bulls.
- December 21 low could lure Aussie bears below the key EMA, monthly resistance line add to the upside filters.
AUD/USD drops to 0.7628 in the latest pullback from the intraday high of 0.7649 during early Thursday. In doing so, the aussie pair steps back from the key resistance, previous support, comprising multiple levels marked since the mid-December 2020.
Considering the normal RSI conditions, coupled with the strength of the aforementioned hurdle near 0.7645/50, AUD/USD is likely to witness further downside.
Though, the recent breakout of a one-week-old resistance line, now support near 0.7610, can test the intraday sellers.
Also acting as the key support is 50-day EMA level of 0.7595, a break of which could direct AUD/USD bears to the late December’s low surrounding 0.7460.
Alternatively, an upside clearance of 0.7650 will escalate the previous day’s recovery moves toward a falling trend line from January 06, currently around 0.7770.
During the rise, the 0.7700 can offer an intermediate halt whereas January’s top, also the highest since early 2018, around 0.7820 could lure the AUD/USD bulls afterward.
AUD/USD daily chart
Trend: Pullback expected
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