- AUD/USD displays well-known moves in the early European trading hours.
- Bulls face resistance barriers near the 0.7745 multiple stops.
- The neutral momentum oscillator adopts a wait-and-watch approach.
The AUD/USD pair recovers part of its previous day’s losses on Thursday in the initial European session. The pair quickly rebounds from the lows of 0.7221 to trade near the session’s high.
At the time of writing, AUD/USD trades at 0.7736, up 0.09% for the day.
AUD/USD daily chart
-637588952344496816.png)
On the daily chart, the AUD/USD pair is consolidating in the range of 0.7720-0.7760 for the past two sessions. The downward trend line from the highs of 0.7892 acts as a wall of defense for the bulls.
AUD/USD is placed comfortably above the 50-day Simple Moving Average (SMA) at 0.7723. If price breaks the above-mentioned level, then it would invite more selling opportunities. The first area of support could be located at the 0.7700 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator coincides with the midline while possessing a neutral stance. Any downtick in the MACD would trigger another round of selling for the pair. On moving lower, AUD/USD bears would navigate toward the June 4 low at 0.7650.
In doing so, the gates will be open for the levels seen in early April at the 0.7600 horizontal support level.
Alternatively, if price is able to cross the session’s high at 0.7738, then it could continue to move toward the previous day’s high at 0.7763 in the first target place.
AUD bulls would then encounter the highs of June 7 at 0.7794, which also coincides with the aforesaid bearish sloping line. The next area of resistance aligns at the April 26 high in the vicinity of 0.7820 area.