AUD/USD Price Analysis: Looks to recapture 200-HMA on the road to recovery

  • AUD/USD attempts a bounce, as bulls regain 0.7700
  • Hourly chart points to a bumpy road to recovery amid bearish RSI.
  • The aussie takes a reprieve from fresh DXY selling.

AUD/USD is attempting a comeback above 0.7700, having hit fresh six-day lows at 0.7690 on Thursday after the US dollar rebounded sharply amid risk-aversion.

Reports that US President Joe Biden is proposing to hike the capital gains tax triggered a wave of risk-aversion and knocked-off Wall Street indices, lifting the haven demand for the greenback.

At the time of writing, the aussie is looking to recapture the 200-hourly moving average support-turned-resistance at 0.7719, as it bounces off daily lows at 0.7698.

The renewed uptick in the spot is back by the sharp reversal seen in the Relative Strength Index (RSI) from lower levels. The indicator still remains below the midline, suggesting a shallow recovery for the AUD bulls.

Therefore, the bearish 21-HMA at 0.7726 could offer stiff resistance if the rebound extends.

The next test for the buyers is seen at the 50-HMA, which is now located at 0.7732.

AUD/USD hourly chart

Alternatively, a rejection at higher levels could once again recall the sellers, exposing the multi-day lows.

The psychological 0.7650 level could be next on the sellers’ radars.

AUD/USD additional levels to watch


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