Is AUD/USD ready for a bullish breakout?
2023.05.11 06:17
had been trending lower within a downward sloping channel after peaking at 0.7157 in early February. Although the pair managed to break above this bearish pattern, it has been directionless since then, while its recent attempt to escape its tight range faltered and the price experienced a pullback.
The short-term oscillators are cautiously tilting towards the positive side. The RSI is pointing down above its 50-neutral mark, while the MACD histogram is holding above zero and its red signal line.
Should buying pressures persist, the price might face the recent resistance of 0.6817, which is the highest level observed since February 24. Escaping the rangebound pattern, the pair could extend its advance towards 0.6920 before it tests the 0.7030 hurdle. A break above the latter may open the door for the 11-month high of 0.7157.
Alternatively, if the bears manage to push the price lower, initial declines could come to a halt at the 0.6695 territory. Should that floor collapse, the bears could target 0.6620 before the 0.6590 support gets tested. Failing to halt there, the pair could encounter strong support at the 2023 bottom of 0.6563.
Overall, AUDUSD failed to close above its sideways pattern and retraced lower, but the technical indicators currently suggest that bullish forces retain the upper hand. Hence, the pair could enter a consolidation phase before the bulls retry to push the price higher.
