AUD/USD Analysis: Pair Continues Gaining Recovery in the Vicinity of 0.7430-35 as the Market Awaits CPI from the US
Three Weeks’ Low Revisited
The AUD/USD trading pair was able to draw a considerable amount of purchase to itself close to the 0.7400 benchmarks or the point of three weeks’ low point it got to early on Tuesday, but right now, it looks like it has broken a losing trend of four days.
AUD/USD price chart. Source TradingView
The currency pair sustained its average recovery that was gained in the course of the first part of the European session, and it was noted to be trading close to the 0.7430 to 0.7435 range, which was more than 0.20% on the day’s trading.
Looking at it from a technical point of view, the latest steep fall from the top level since last June gave signs of some level of resistance under the 50% Fibonacci retracement area of 0.7165 to 0.7662 solid rally. It was swiftly followed up by a 200-period social media average going on the chart every four hours in the area of 0.7385, which is expected to act directly as a major point for near-term and small traders.
It is possible that a follow-up sale under the mentioned support line might make way for the extension of the slide that caused a correction in the direction of the 61.8% Fibonacci level close to the mid-0.7300 areas while it is on its way to the 0.7325 zones. The latter happens to coincide with an upward trend line that extends from under 0.7000 areas or the year-to-date low point. If this point is broken, it will be taken as a new impetus for bearish traders.
As all technical signals on the daily chart are steadily losing their positive traction and are standing firm in the bearish zone on the chart for every four hours, the AUD/USD currency pair might then become a little vulnerable in testing the 0.7300 benchmarks. The decline that has been going on might then be extended in the direction of 0.7240 zones on its way to the 0.7200 figure as well as the 0.7175 to 0.7170 area of support.
On the other side, the Fibonacci level of 38.2% in the 0.7470 zones is now looking like it is being an immediate solid point of resistance before the coming of the 0.7500 benchmarks. A sustained level of strength over that would give signs that the pullback has finished running its course, and the bias would be shifted again in favor of bulls.