- AUD/USD consolidates gains in the Asian session on Friday.
- Bulls face consistent resistance between 0.7380 and 0.7400.
- Oversold MACD implies a wait-and-watch approach before placing aggressive bids.
AUD/USD prints mild gain after aggressive selling in the overnight session, in the Asian trading hours. The pair opened lower but swiftly recovered to the session’s high in a close trading range.
At the time of writing, AUD/USD is trading at 0.7342, up 0.10% for the day.
AUD/USD daily chart
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On the daily chart, the pair has been under selling pressure from the high of 0.7599 made on July 6 and touched the lows of 0.7288 on July 21.
The descending trendline from the above high acts as a strong resistance for the pair. The trendline coincides with the break of the 20-day Simple Moving Average (SMA) at 0.7583.
That said, if price breaks and sustains below the intraday session, then it could move toward the low of August 11 at 0.7322, which is also a double support formation.
A break of the mentioned support level would bring a low of July 21 at 0.7288 back into action.
Further, bears would have an opportunity to travel back to the levels last seen on November 23, 2020, at 0.7264.
Alternatively, the oversold Moving Average Convergence Divergence (MACD) indicator with stretched selling opportunities, makes bulls hopeful for further upside movement.
In doing so, the bulls would attempt to retest the 20-day SMA at 0.7367.
Next, the AUD/USD bulls would aim to break the bearish slopping line to testify the 0.7400 psychological level.
The next area of resistance emerges at the 0.7425 horizontal resistance level.