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MTrading Team • 2023-05-18

AUDUSD lures bears by poking 0.6635 support

AUDUSD lures bears by poking 0.6635 support

AUDUSD remains pressured inside a two-week-old descending triangle after posting heavy losses in the last week. Also favoring the downside bias is the Aussie pair’s sustained trading below the 200-EMA, as well as bearish MACD signals. It’s worth noting, however, that the RSI (14) appears mostly oversold and hence the pair’s bottom-picking around the stated triangle’s support line, close to 0.6635 at the latest, can’t be ruled out. Should the pair sellers remain in the driver’s seat past 0.6635, a fall to the monthly low of 0.6605 becomes imminent. Following that, the previous monthly bottom and the yearly trough, respectively around 0.6572 and 0.6563, may challenge the pair’s further downside before giving control to the bears.

Alternatively, AUDUSD recovery needs to defy the triangle formation by staying successfully beyond the resistance line, around 0.6650 at the latest. In that case, the 200-EMA hurdle of near 0.6700 may question the buyers before directing them to the monthly peak of near 0.6820. It should be observed that the Aussie pair’s sustained run-up beyond 0.6820 enables the bulls to aim for the 0.7000 psychological magnet, a break of which could allow buyers to target February’s highs surrounding 0.7030 and 0.7160.

Overall, AUDUSD bears are holding the reins but need validation to dominate further.

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