- AUD/USD trades cautiously with some gains on Monday.
- Bulls struggle to hold onto the gains beyond 0.7520.
- Oversold MACD indicates big swing moves in any direction.
After having intense selling pressure in the last three sessions, AUD/USD prints some gains on Monday. The pair makes an intraday high above 0.7500 key psychological mark, but fails to hold onto the gains.
At the time of writing, the AUD/USD pair is trading at 0.7492, up 0.20% for the day.
AUD/USD daily chart
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On the daily chart, the pair has been under strong selling pressure since it broke the 0.7700 crucial trading level. The formation of multiple bottoms makes it an important level to trade.
The price action below the session’s low at 0.7478 could open the fresh round of selling for the pair while keeping the previous year’s level in sight.
The first target which the bears would capture would be low on December 10 at 0.7425.
The oversold Moving Average Convergence Divergence (MACD) indicator makes bears hopeful for further downside toward December 9, 2020, low at 0.7403.
Next, market participants would aim for the 0.7385 horizontal support level.
Alternatively, any uptick in the MACD could make sharp upside movement due to overstretched selling conditions. AUD/USD bulls would attempt to reach the 200-day Simple Moving Average (SMA) at 0.7555.
A sustained move above the 200-day SMA will strengthen the bullish biasness in the pair.
In doing so, the AUD/USD pair would reach out at the 0.7600 horizontal resistance level followed by the April 13 high at 0.7651.