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Denis Sergienko • 2022-11-09

AUDUSD bulls flex muscles but 0.6530 holds the gate

AUDUSD bulls flex muscles but 0.6530 holds the gate

AUDUSD retreats to the upper line of a one-month-old symmetrical triangle. However, the RSI (14) suggests that the bulls are running out of steam. As a result, the upside momentum appears doubtful unless witnessing a successful break of the 0.6480 hurdle. Even so, multiple hurdles surrounding the 61.8% Fibonacci retracement level of the pair’s downside between September 20 and October 13, around 0.6530, appears as the key resistance to watch for a better view. If the quote manages to stay beyond 0.6530, the odds of a run-up towards 0.6570 and then to 0.6655-60 can’t be ruled out.

Meanwhile, pullback moves remain elusive unless staying beyond the 200-SMA level surrounding the 0.6400 threshold. Following that, 0.6365 and 0.6345 levels can entertain the AUDUSD bears. It should be noted, however, that the aforementioned triangle’s support line, close to 0.6290 at the latest, will be crucial to follow afterward. In a case where the pair successfully breaks the 0.6290 support, it becomes vulnerable to refreshing the yearly low, currently around 0.6170.

Overall, AUDUSD lures buyers but confirmation is necessary before taking a long position.

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