- AUDUSD bounced off the support zone
- Downtrend seems to weaken
- Pair tests key resistance level at 0.7000
The AUDUSD currency pair has been moving higher over the past few days. There is a possibility that market has already priced in rumoured RBA rate cuts and the pair may be set to deliver an upward correction. However, from a technical point of view the pair has been trading within a downtrend for quite a long time already. Price reached key support zone in the previous week and met with the positive price reaction. Following two weeks of range trading, the pair launched an upward move.
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Source: xStation5
Taking a look at D1 frame we can see that the price has reached local resistance zone. A break above the 0.70 handle could pave the way for more gains. In such a scenario, bulls could aim for the 0.7160 handle - resistance level from the W1 interval. While rebound off the support level is promising, one needs to remember that the overall trend on this market is still downward.
Source: xStation5
Last but not the least, let’s take a look at the situation on the m30 time frame. A point to note is that the pair often reacted to the 55-session moving average (blue line on the chart). Having said that, unless a break below occurs, situation bodes well for buyers. A steep downward move that occurred earlier today saw the price break below the aforementioned moving average but quickly erased. The 0.7000 handle remains the key resistance level to watch.
Source: xStation5
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