AUD/USD Price Analysis: Bulls extend bounce off 200-SMA towards 0.6960 key hurdle

AUD/USD picks up bids to refresh intraday high near 0.6930, extending the previous day’s rebound from the 200-SMA during early Monday morning in Europ  |  08/08/2022 05:37
  • AUD/USD consolidates Friday’s losses around 12-day low, grinds higher around the daily top of late.
  • Convergence of 50-SMA, weekly resistance line challenges buyers.
  • 200-SMA restricts short-term downside, RSI rebound also keeps buyers hopeful.

AUD/USD picks up bids to refresh intraday high near 0.6930, extending the previous day’s rebound from the 200-SMA during early Monday morning in Europe.

In addition to the U-turn from the key moving average, the recent run-up in the RSI (14) from oversold territory and sluggish MACD also tease the buyers.

However, a confluence of the 50-SMA and one-week-old descending resistance line, around 0.6960 by the press time, challenges AUD/USD bulls.

Following that, a north-run towards the 0.7000 threshold and then to the monthly peak near 0.7050 can’t be ruled out.

On the contrary, a downside break of the 0.6880 support level, comprising the 200-SMA, should recall the AUD/USD sellers.

That said, the 50% Fibonacci retracement of the July-August upside, near 0.6860, could act as an additional filter to the south.

Overall, AUD/USD prices signal further recovery moves. However, bulls await a clear upside break of 0.6960 to retake control.

AUD/USD: Four-hour chart

Trend: Further recovery expected

 

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