- AUD/USD remains sidelined after a three-day uptrend, failures to cross immediate hurdle.
- Weekly support line tests sellers, falling trend line from early April adds to the upside filters.
AUD/USD probes three-day uptrend below 0.7600, around 0.7575 amid Thursday’s Asian session. In doing so, the Aussie pair justifies the pullback from 50-SMA.
However, strong Momentum and sustained trading beyond the weekly rising support line keeps the buyers hopeful.
Hence, AUD/USD traders should wait for a clear break of the area between the stated SMA and support line, respectively around 0.7600 and 0.7535.
While the downside break of 0.7535 won’t hesitate in challenging the yearly bottom surrounding 0.7475, an upside clearance of 50-SMA level will aim for a seven-week-old resistance line near 0.7630.
It’s worth noting that a falling trend line from June 11 and Monday’s swing high, near 0.7620 and 0.7545 in that order, add filters to the AUD/USD pair’s short-term moves.
To sum up, AUD/USD recovery needs justification but bulls aren’t out of the woods.
AUD/USD four-hour chart
Trend: Pullback expected