- AUD/USD pauses two-day pullback from yearly resistance line.
- Easing bullish bias of MACD, clear break of 200-DMA favor sellers.
- Multiple moving averages, five-week-old ascending trend line restrict further downside.
AUD/USD struggles for clear directions around 0.7270 during Wednesday’s Asian session, after declining to the fresh one-week low on breaking the 200-DMA.
Read: RBA’s Lowe: RBA has scope to wait, assess information on uncertainties
Even so, the Aussie pair’s clear U-turn from the one-year-old descending trend line, followed by the 200-DMA break and the retreat of the MACD line keep the AUD/USD sellers hopeful.
That said, the 100-DMA and the 50-DMA levels, around 0.7230 and 0.7190 in that order, restrict the short-term downside of the pair.
Following that, an upward sloping support line from January 28, near 0.7150 by the press time, will be crucial to watch.
Meanwhile, recovery moves remain elusive below the 200-DMA level of 0.7317.
It’s worth noting that’s the AUD/USD recovery beyond the 200-DMA, will aim for the 0.7400 threshold but an aforementioned resistance line from March 2021, close to 0.7435 will challenge the pair buyers afterward.
Overall, AUD/USD remains pressured towards a five-week-old support line with a bumpy road.
AUD/USD: Daily chart
Trend: Further weakness expected