- The AUD/USD pair built on its recent recovery move from multi-month lows and climbed further beyond the key 0.70 psychological mark on Friday.
- The positive momentum, however, now seems to have stalled near a resistance marked by 50% Fibo. level of the 0.7207-0.6831 recent downfall.
Given this week’s sustained strength above 50-day SMA for the first time in over five weeks and a subsequent move beyond a short-term descending trend-line resistance, the set-up remains in favour of bullish traders.
Meanwhile, technical indicators on the daily chart have just started gaining positive momentum and add credence to constructive outlook, though traders await the outcome of the crucial Trump-Xi meeting at the G20 summit.
The mentioned hurdle is closely followed by 100-day EMA, which if cleared will reinforce near-term bullish breakout and set the stage for a move towards testing the 0.7060-65 supply zone – coinciding with 61.8% Fibo. level.
On the flip side, any meaningful pullback now seems to find decent support near the 0.6975 region (38.2% Fibo.), which if broken might turn the pair vulnerable to accelerate the slide further towards the 0.6920 level (23.6% Fibo.).
AUD/USD daily chart
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