- Multiple resistances can limit the latest recovery.
- 0.6860 seems strong downside support
Although 50MA limits immediate downside of the AUD/USD pair, 100MA and a horizontal-resistance near 0.6940 confines the quote’s advances as it trades near 0.6930 while heading into the European open on Thursday.
In order to aim for early-month lows and 50% Fibonacci retracement around 0.6965/70, the quote not only need a successful break of 0.6930 level comprising 100-bar moving average on four-hour chart (4H 100MA) but also requires clear cross of 0.6940 horizontal-line including 38.2% Fibonacci retracement of its April – May downturn and current month high.
Should prices rally past-0.6970, 61.8% Fibonacci retracement near 0.6990 and 0.7030 could become buyers’ favorites.
On the downside, 4H 50MA at 0.6905 now can restrict nearby declines, a break of which can recall 0.6890 and 0.6860 to the chart.
Further, pair’s extended south-run under 0.6860 highlights the year 2016 low near 0.6830 for sellers to watch.
AUD/USD 4-Hour chart
Trend: Pullback expected
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