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NEWS : AUD/USD technical analysis: Bulls await a sustained break through 0.70 handle, 4-week old descending trend-line

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AUD/USD technical analysis: Bulls await a sustained break through 0.70 handle, 4-week old descending trend-line

  • The AUD/USD pair held on to its positive tone through the early European session on Wednesday, with bulls still awaiting a sustained break through the key 0.70 psychological mark.
  • The mentioned handle coincides with a four-week-old descending trend-line, which if cleared will mark a near-term bullish breakout and set the stage for a further near-term positive move. 

This is closely followed by 50% Fibonacci retracement level of the 0.7207-0.6831 recent bearish trajectory, around the 0.7020 region – also marks monthly tops, above which the pair seems all set to aim towards challenging the 0.7060 supply zone.

Meanwhile, technical indicators on the daily chart have just started gaining positive traction and reinforce the constructive set-up, though slightly overbought conditions on the 4-hourly chart seemed to be the only factor capping any further up-move.

Hence, it would be prudent to wait for a convincing break through the mentioned barriers before confirming that the pair might have already bottomed out in the near-term and traders start positioning for any further appreciating move.

On the flip side, rejection slide from the current resistance zone now seems to find immediate support near the 0.6960-50 region, which if broken might negate the bullish outlook and prompt some aggressive selling in the near-term.

Below the said support, the pair is likely to accelerate the slide back towards testing the 0.6900 handle before eventually dropping to its next major support near the 0.6865-60 area en-route multi-month lows, around the 0.6830 region.

AUD/USD daily chart

 

AUD/USD

Overview
Today last price 0.6995
Today Daily Change 0.0009
Today Daily Change % 0.13
Today daily open 0.6986
Trends
Daily SMA20 0.6938
Daily SMA50 0.6966
Daily SMA100 0.7038
Daily SMA200 0.7105
Levels
Previous Daily High 0.6996
Previous Daily Low 0.6951
Previous Weekly High 0.6938
Previous Weekly Low 0.6831
Previous Monthly High 0.7062
Previous Monthly Low 0.6862
Daily Fibonacci 38.2% 0.6979
Daily Fibonacci 61.8% 0.6968
Daily Pivot Point S1 0.6959
Daily Pivot Point S2 0.6932
Daily Pivot Point S3 0.6914
Daily Pivot Point R1 0.7004
Daily Pivot Point R2 0.7023
Daily Pivot Point R3 0.705
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