AUD/USD technical analysis: Bulls gearing up for a move beyond 0.70 handle

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  • The AUD/USD pair climbed to fresh two-week tops on Wednesday and already seems to have found acceptance above 50-day SMA for the first time since April. 
  • The mentioned hurdle coincided with 38.2% Fibo. level of the 0.7207-0.6831 recent downfall and might now be seen as a key pivotal point for short-term traders.

With technical indicators on the daily chart just starting to gain positive momentum, bulls are likely to aim towards challenging near two-month-old descending trend-line resistance near the key 0.70 psychological mark.

A sustained break through the said handle would signal a near-term bullish breakout and accelerate the upward trajectory towards monthly swing highs, around the 0.7020-25 region – also marking 50% Fibo. resistance level. 

A follow-through buying should now set the stage for a further near-term appreciating move towards testing its next major barrier near the 0.7060-65 region or 61.8% Fibo. level en-route the 0.7100 round figure mark.

On the flip side, the 0.6960-50 region now seems to protect the immediate downside, which if broken might prompt some additional weakness further towards the 0.6900 handle with some intermediate support near the 0.6920 level (23.6% Fibo. level).

AUD/USD daily chart

 

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