- AUD/USD refreshes weekly low, fails to keep previous day’s gains.
- Downbeat Momentum line suggests further weakness in prices.
- Six-week-old support line, 200-SMA will be a tough nut to crack for bears.
AUD/USD takes offers around 0.7820, down 0.25% intraday, during early Wednesday. In doing so, the Aussie pair retests the key hurdle, broke on Friday, amid descending Momentum line.
Given the cautious sentiment ahead of the key US inflation figures, sellers may conquer the 0.7820 resistance-turned-support in search of the 0.7800 threshold.
However, the AUD/USD pair’s weakness past-0.7800 may only have 0.7760 to cheer as a confluence of 200-SMA and an ascending support line from April 01 will challenge the bears around 0.7710 afterward.
Alternatively, 0.7860 and the latest high around 0.7900 guard the quote’s recovery moves.
Though, AUD/USD bulls are less likely to get serious until witnessing a clear break above 0.7930, which in turn will enable them to battle the yearly top near 0.8010.
AUD/USD four-hour chart
Trend: Pullback expected