- AUD/USD reverses an early dip to 0.6870-65 confluence support.
- Bulls are likely to wait for a sustained move beyond 0.6900 mark.
The AUD/USD pair has managed to recover around 15-20 pips from daily lows and is currently placed near the top end of its daily trading range, albeit remained below the 0.6900 round-figure mark.
The pair showed some resilience near the 50% Fibonacci level of the 0.6800-0.6938 positive move, which now coincides with 100-hour SMA and should act as a key pivotal point for intraday traders.
Meanwhile, technical indicators on 4-hourly/daily charts maintained their bullish bias and have again started gaining positive traction on the 1-hourly chart, supporting prospects for additional gains.
Hence, a move back towards reclaiming the 0.6900 handle – a resistance marked by 23.6% Fibo. level – now looks a distinct possibility amid the prevalent selling bias surrounding the US dollar.
Some follow-through buying has the potential to lift the pair towards Friday’s swing high, around the 0.6935-40 region, before bulls eventually aim towards the key 0.70 psychological mark.
On the flip side, the 0.6870-65 confluence region might continue to protect the immediate downside, which if broken seems to accelerate the slide further towards mid-0.6800s (61.8% Fibo. level).
Failure to defend the mentioned support levels might turn the pair vulnerable to slide below the 0.6830 intermediate horizontal support towards challenging the 0.6800 round-figure mark.
AUD/USD 1-hourly chart
-637120931078639618.png)
Share
