FX
  • AUD/USD remains range-bound below 0.7565, eases from intraday high of late.
  • Failures to stay below 200-DMA, Momentum rebound backs recovery hopes.
  • Six-month-old horizontal line guards immediate upside, bears need a clear break of 0.7520.

AUD/USD remains sidelined around 0.7550, edges lower of late, during Friday’s Asian session. In doing so, the Aussie pair portrays a corrective pullback from the yearly low while taking rounds to 200-day SMA (DMA).

Given the U-turn of the Momentum line from oversold territory, the latest recovery is likely to last longer if the quote manages to secure a daily closing beyond the 200-DMA level of 0.7555.

Following that, the 0.7600 round figure and multiple levels marked since late December 2020 around 0.7640-45 may test AUD/USD buyers before directing them to a downward sloping trend line from February 25, close to 0.7765.

On the flip side, the 0.7531-19 area comprising multiple lows marked since December 11, 2020 tests the pair bears targeting the August-September 2020 tops near 0.7420.

During the quote’s weakness past 0.7420, highs marked in October and early November of 2020, close to 0.7340-45, becomes the key.

Overall, AUD/USD sellers seem tiring around the key SMA support, suggesting the bounce off important support zone.

AUD/USD daily chart

Trend: Further recovery expected

Articles You May Like

Gold slides 1% as strong US jobs data clouds rate cut bets
Gold steady as markets await U.S. jobs data
Yen Robust on Strong Wage Growth Data, NFP to Determine Dollar’s Path
China vows to ‘moderately’ strengthen fiscal policy to bolster economic recovery
Yen Pullback Persists as Sterling and Dollar Gain Ahead of Crucial Events