- AUD/USD picks up bids to renew intraday high, consolidates recent losses after two-week downtrend.
- Convergence of 100-HMA, two-day-old resistance line challenges immediate upside.
- RSI hints at further recovery, 200-HMA holds the key to bull’s conviction.
- Sellers can keep yearly low on radar, previous resistance line may offer intermediate bounces.
AUD/USD renews intraday high around 0.6960 as it pares losses made during the last two weeks amid Monday’s Asian session.
In doing so, the Aussie pair justifies a trend line breakout on the RSI (14), as well as a bounce off the resistance-turned-support line from June 08.
However, a confluence of the 100-HMA and a downward sloping trend line resistance from Thursday, around 0.6960, appears a tough nut to crack for the AUD/USD bulls.
Following that, a run-up towards the 0.7000 psychological al magnet can’t be ruled out. However, the 200-HMA hurdle surrounding 0.7040 may challenge the pair buyers afterward.
On the contrary, the previous resistance line from early June, close to 0.6875 by the press time, precedes the monthly low of 0.6850 to restrict the short-term AUD/USD downside.
In a case where the quote drops below 0.6850, the multi-month low marked in May around 0.6830 appears the last defense for the pair buyers before flashing the 0.6800 threshold on the chart.
AUD/USD: Hourly chart
Trend: Further recovery expected