- AUD/USD once again managed to attract some dip-buying near 0.6400 mark.
- The near-term technical set-up still seems tilted in favour of bullish traders.
- Sustained move beyond the 0.6500 mark needed to confirm the bullish bias.
The AUD/USD pair continued showing some resilience near the 0.6400 mark and managed to regain some positive traction on the first day of a new trading week. The uptick assisted the pair to recover a major part of the previous session’s slide, albeit struggled to lift it back above 100-hour SMA.
The recent pullback from the 0.6560-70 supply zone has been along a descending trend-channel formation on hourly charts and points to some additional near-term weakness. However, oscillators on the daily chart maintained their bullish bias and support prospects for the emergence of some dip-buying.
Hence, any meaningful slide back towards the 0.6400 round-figure mark might still be seen as a buying opportunity. This, in turn, should help limit the downside near the trend-channel support, which is currently pegged near the 0.6380-75 region.
Meanwhile, bulls are likely to wait for some follow-through buying beyond 100-hour SMA before positioning for a move back towards the key 0.6500 psychological mark. The mentioned hurdle marks the top end of the trend-channel, which if cleared might be seen as a fresh trigger for bulls.
A convincing breakthrough the trend-channel resistance has the potential to lift the pair further beyond 100-day SMA, around the 0.6515 region, towards the 0.6560-70 supply zone. Acceptance above 100-day SMA should pave the way for a move towards reclaiming the 0.6600 round-figure mark.
AUD/USD 1-hourly chart
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Technical levels to watch
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