- AUD/USD remains pressured below short-term resistance, fails to extend Friday’s run-up.
- RSI, MACD lure bulls as the quote stays beyond previous resistance line, 100-SMA.
- 50-SMA adds to the downside filters, 0.7275 acts as important resistance.
AUD/USD struggles to extend the previous day’s upside momentum, down 0.13% around 0.7160 during Monday’s Asian session.
Even so, AUD/USD trades successfully past the five-week-old descending trend line and 50-SMA, taking rounds to 100-SMA recently. However, a fortnight-long horizontal area challenges the bulls as MACD shows traders’ indecision and RSI nears the overbought region, suggesting the need for a strong push to the north if buyers want to keep the reins.
Following that, a convergence of 200-SMA and 50% Fibonacci retracement (Fibo.) November-December fall, around 0.7270-75, will be in focus. During the run-up, November 19 swing lows near 0.7225-30 can act as a buffer.
On the downside, the resistance-turned-support line and 50-SMA, respectively close to 0.7120 and the 0.7100 threshold, could stop the sellers during a pullback.
Adding to the supports are 0.7060 and 0.7030 levels, a break of which will shift the market’s attention towards the key 0.7000-0.6990 area comprising lows marked during November 2020 and so far during December 2021.
AUD/USD: Four-hour chart
Trend: Further recovery expected
