- AUD/USD consolidates gains tracing the previous session’s fallout.
- Downside risk imminent below 0.7230, multiple support occurrence spot.
- MACD throws caution for aggressive traders.
AUD/USD attempts to gather some momentum on Wednesday in the Asian session. The pair fell from the high of 0.7312, composed of more than 80-pips movement in the overnight session. At the time of writing, AUD/USD is trading at 0.7240, up 0.07% for the day.
AUD/USD daily chart
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On the daily chart, the AUD/USD pair has been consolidating in a short-term trading range of 0.7230 and 0.7320 since September 17. The 20 and 50-day Simple Moving Average (SMA) at 0.7330 confluence exerts downside pressure on any attempts to break the hurdle. Now, if the price sustains above the intraday high at 0.7251, it could move back to the 0.7275 horizontal resistance area, followed by the previous day's high of 0.7312.
A successful break of the mentioned confluence would allow AUD/USD bulls to testify to the 0.7350 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) trades below the midline with a bearish crossover. Any downtick in the MACD would open the gates for immediate support at 0.7220.
Next, the market participants will be on the lookout to meet the low made on August 24 at 0.7200, followed by the 0.7150 horizontal support level.