- AUD/USD prints mild daily gains, picks up bids of late.
- Sluggish MACD challenges bulls but 100, 200-EMA restricts immediate downside.
- Two-week-old horizontal resistance adds to the upside filters.
AUD/USD recovers to 0.7367, following its bounce off the key EMA confluence during Monday’s Asian session.
Even so, the quote has a bumpy road to the north as sluggish MACD and a broad horizontal area established since September 02 questions the recovery moves.
Hence, the recovery moves may allow AUD/USD to regain 0.7400 but a broad resistance zone near 0.7410-25 will be the key hurdle to watch afterward.
Even if the pair buyers manage to cross 0.7425, the monthly high of 0.7478 will be a tough barrier to follow.
Meanwhile, a convergence of the 100 and 200 Exponential Moving Averages (EMAs) around 0.7350-55 becomes a strong near-term support for AUD/USD traders to watch.
In a case where AUD/USD drops below 0.7350, August 25 high and August 30 low near 0.7280 will lure the bears.
AUD/USD: Four-hour chart
Trend: Further recovery expected