Bulls running short of fuel below 0.7250

  • AUD/USD seesaws inside 20-pip trading range after the biggest daily jump in two weeks.
  • Bearish chart pattern, sluggish oscillators keep sellers hopeful.
  • 200-SMA acts as a validation point for a slump, seven-week-old horizontal area restricts immediate upside.

AUD/USD remains inside the latest 20-pip trading range around 0.7230-50 during Wednesday’s Asian session. The Aussie pair jumped the most since December 22 the previous day while consolidating Monday’s heavy losses.

That said, the AUD/USD pair’s failure to keep the bounce off 100-SMA joins sluggish MACD and RSI to favor sellers. However, confirmation of the monthly rising wedge and a downside break of 200-SMA becomes necessary for the bears to take an entry, which in turn highlights the 0.7170 level as the key support.

Following that, a slump towards the late December swing low near 0.7080 becomes imminent. Given the bear’s ability to keep reins past 0.7080, the 2021 low of 0.7000 will be in focus.

Alternatively, recovery moves may aim for 0.7250 but a seven-week-old horizontal area restricts short-term upside around 0.7280. Adding to the upside filter is the stated wedge’s upper line near 0.7285.

In a case where AUD/USD crosses the 0.7285 hurdle, the 0.7300 threshold and mid-November peak surrounding 0.7370 should return to the charts.

AUD/USD: Four-hour chart

Trend: Pullback expected


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