Home AUD/USD Price Analysis: Rebound appears capped below 0.7750 despite bull cross
FXStreet News

AUD/USD Price Analysis: Rebound appears capped below 0.7750 despite bull cross

  • AUD/USD attempts recovery after a brief reversal in Asia.
  • Hourly chart shows a bull crossover while RSI stays below 50.00.
  • Falling Treasury yields offer support to the aussie.

AUD/USD is off the lows, flirting with the 0.7750 barrier amid falling Treasury yields, which continue to make the aussie a more attractive higher-yielding asset.  

The aussie has trimmed losses, as a minor bounce in the US dollar earlier in Asia seems to have fizzled out. Further, the S&P 500 futures, a fear gauge, also erase losses to now trade flat at 4,163.

From a near-term technical perspective, AUD/USD’s recovery appears challenged by a bunch of critical hourly moving averages (HMA) stacked around 0.7747/50 region.

A firm break above that resistance zone is needed to retest the daily highs at 0.7765. Further up, the 0.7800 round number could be probed.

The bullish crossover on the given time frame keeps the buyers hopeful. The 21-HMA has moved above the 100-HMA in the last hour.

AUD/USD hourly chart

However, with the Relative Strength Index (RSI) back under 50.00, the upside attempts limited at the moment.

Therefore, the bear could aim at the 200-HMA support at 0.7709 on a renewed selling wave, below which the 0.7700 mark would be eyed.

AUD/USD additional levels to watch

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.