Technical Analysis – AUDUSD could pivot higher again
April 4, 2023 2:28 pm
AUDUSD reversed half of its Monday gains, pulling straight to 0.6730 after touching the upper boundary of the bullish channel near 0.6790.
The RSI and the MACD have weakened closer to their neutral levels on the four-hour chart, reflecting fading buying appetite, though the pair could still find support to pivot higher or stabilize the current downfall. Notably, a bullish cross between the 20- and 200-period simple moving averages (SMAs) is developing, increasing optimism for a positive trend continuation within the upward-sloping channel.
The 20-period SMA at 0.6720, which intersects the long-term descending line from May 2021, managed to push the price higher again. Should the bulls successfully claim the 38.2% Fibonacci retracement of the 0.7157-0.6563 at 0.6740 too, the pair could climb towards the 38.2% Fibonacci zone of 0.6790 and the channel’s upper band. Another victory here could bolster buying appetite up to the 0.6830-0.6860 region.
In the event the price slips below the 20-period SMA, the 23.6% Fibonacci level of 0.6700 could delay an extension to the channel’s lower band seen around 0.6660. Then, a continuation below 0.6630 could clear the way towards the March low of 0.6563.
In brief, AUDUSD may have the chance to resume its bullish momentum in the short term. A close above 0.6740 could shift the attention back to April’s highs. Otherwise, a drop below 0.6700 could intensify selling pressures.
AUDUSD reversed half of its Monday gains, pulling straight to 0.6730 after touching the upper boundary of the bullish channel near 0.6790.
The RSI and the MACD have weakened closer to their neutral levels on the four-hour chart, reflecting fading buying appetite, though the pair could still find support to pivot higher or stabilize the current downfall. Notably, a bullish cross between the 20- and 200-period simple moving averages (SMAs) is developing, increasing optimism for a positive trend continuation within the upward-sloping channel.
The 20-period SMA at 0.6720, which intersects the long-term descending line from May 2021, managed to push the price higher again. Should the bulls successfully claim the 38.2% Fibonacci retracement of the 0.7157-0.6563 at 0.6740 too, the pair could climb towards the 38.2% Fibonacci zone of 0.6790 and the channel’s upper band. Another victory here could bolster buying appetite up to the 0.6830-0.6860 region.
In brief, AUDUSD may have the chance to resume its bullish momentum in the short term. A close above 0.6740 could shift the attention back to April’s highs. Otherwise, a drop below 0.6700 could intensify selling pressures.
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