- AUD/USD fails to carry the previous day’s upside momentum.
- Bearish MACD, normal RSI suggests further consolidation of recent gains.
- Multiple stops around 0.7700 can challenge the bears, monthly high will test the bulls.
AUD/USD fades repeated bounces off 200-HMA while easing towards 0.7760 during the early Friday.
Although the risk-off mood joins the bearish MACD to direct the quote towards the key HMA, the further downside will be restricted by the support line of a three-day-old symmetrical triangle.
Hence, a downside break of 0.7750 will need to provide a clear break below the triangle’s support of 0.7735 to visit the 0.7700 threshold.
However, there are multiple tops and bottoms marked during the early February that challenge AUD/USD bears around 0.7700, a break of which will need validation from 0.7680 before testing the monthly low of 0.7562.
On the flip side, the pair’s ability to cross the triangle’s resistance line, at 0.7790 now, will have to refresh the monthly high of 0.7806, as well as the yearly top surrounding 0.7820, to convince the AUD/USD bulls.
AUD/USD hourly chart
Trend: Sideways
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