AUD/USD is probing a confluence of widely-tracked Simple Moving Average (SMA) hurdles, having put in a session low of 0.7748 a few minutes before press time.
The 50- and 100-hour SMAs are located near 0.7760, where the pair is currently trading. A convincing break higher would expose the recent high of 0.7805.
However, the 50-day SMA is now trending south, indicating bearish. As such, a sustained move above 0.7760 looks unlikely. A failure to scale the technical hurdle will likely invite selling pressure, yielding a drop toward Wednesday’s low of 0.7724. That would establish a head-and-shoulders pattern on the hourly chart.
Acceptance below 0.7724 would confirm the H&S breakdown, a bearish reversal pattern.
Hourly chart
Trend: Bearish below 0.7724
Technical levels
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