AUD/USD Steps on the 2020 Support Trendline
2023.08.24 06:10
stayed above the 2020 support trendline after testing it for the third time since the pandemic fallout. This happened after a bearish five-week streak that caused the price to drop to a nine-month low of 0.6363.
The pair is set to post its first weekly gain in five weeks as the price picks up positive momentum towards its 20-day simple moving average (SMA) at 0.6511. The upside reversal in the RSI and the Stochastic oscillator are promoting the upturn in the price, though the former is clearly below its 50 neutral mark, while the MACD is attached to its red signal line despite gradually improving, both preserving some skepticism about how sustainable the rebound in the price is.
If the bulls surpass the 20-day SMA, the next hurdle could occur nearby within the 0.6570-0.6615 constraining zone, where the price stalled a couple of times during the previous months. Above that, the recovery could stretch towards the 0.6700 round level and the restrictive 200-day SMA at 0.6730. Yet, the market’s main objective is to break the resistance trendline from April 2022 at 0.6820 after two forceful rejections this year.
Should sellers retake control, the 2020 support trendline would come back under the spotlight near 0.6400. If that floor collapses this time, with the pair diving below the 0.6363 low too, the decline could power up towards the 0.6280 mark taken from October-November 2022. Even lower, the bears are expected to stage another battle within the 0.6169-0.6200 territory and near 30-month lows.
In a nutshell, AUDUSD has again set the foundation for its next bullish phase near the 2020 support trendline, though more efforts will be needed to achieve a bullish bias.
