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MTrading Team • 2023-08-01

AUDUSD has a long way to go before convincing bulls

AUDUSD has a long way to go before convincing bulls

AUDUSD fades bounce off a three-week low while poking a two-month-old rising support line, now immediate resistance around 0.6730, on the Reserve Bank of Australia (RBA) Interest Rate Decision Day. Adding strength to the upside barrier is the 200-DMA hurdle surrounding the said 0.6730 level. Following that, a run-up towards the 50% Fibonacci retracement of February-May downside, near 0.6810, will be quick. However, the double tops around the 0.6900 round figure, close to the 61.8% Fibonacci retracement of 0.6890, can challenge the buyers before giving them control.

On the contrary, the AUDUSD pullback appears elusive beyond the latest swing low surrounding 0.6620. Even if the Aussie pair drops below 0.6620, a horizontal support zone comprising levels marked since early March, near 0.6560-55, will act as the last defense of the bulls ahead of challenging the yearly bottom of 0.6458. It should be noted that the Aussie pair’s weakness past 0.6458 won’t hesitate to challenge November 2022 trough and the previous yearly low, respectively near 0.6270 and 0.6170.

Overall, AUDUSD remains on the bear’s radar despite the week-start rebound and remains a good candidate for “sell the bounce”.

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