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AUD/USD Price Analysis: Prods six-week-old resistance below 0.6700 as bulls run out steam
AUD / USD retreats from intraday high and struggles to extend two-day uptrend. Australian purchasers are challenged by a steady RSI, an impending bull cross on the MACD, and a multi-day-old descending resistance line. Bears in AUD / USD require confirmation from the 61.8% Fibonacci retracement level; the confluence of major DMAs adds to the upside filters.
As it declines toward retesting the intraday low of 0.6671 on Thursday morning, AUD / USD accepts offers up to 0.6680. In doing so, the Aussie pair posts its first daily loss in three days as bulls flirt with a resistance line with a downward slope from early February.
In addition to the six-week-old descending resistance line, purchasers of the AUD / USD pair are challenged by a sluggish RSI (14) and ambiguous MACD signals unless the price remains below the 0.6700 trend line resistance.
Even if the Aussie pair surpasses the 0.6700 round number, a convergence of the 100-DMA and the 200-DMA around 0.6770-75 seems difficult for the bulls to overcome.
In the event that the AUD / USD price remains firmer than 0.6775, the December 2022 high near 0.6895 and the 0.6900 round number may serve as the bulls' last line of defense.
In contrast, a pullback remains elusive beyond the 50% Fibonacci retracement level of the risk-barometer pair's upside from October 2022 to February 2023, which was near 0.6655 at the time of publication.
Following that, the most recent swing low and the 61.8% Fibonacci retracement level, also known as the golden Fibonacci ratio, respectively around 0.6565 and 0.6550, could challenge the AUD / USD bears before granting them control.
Overall, AUD/USD is likely to witness a pullback as China data looms but the downside space appears limited.
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