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AUD/USD Price analysis: corrective downturn confronts 0.6960 resistance
AUD/USD attracts bids to reestablish intraday high and consolidates recent losses following a two-week decline. Convergence of a two-day-old, 100-HMA resistance line impedes the imminent uptrend. The 200-HMA is the key to the bull's confidence, as suggested by the RSI.
The yearly low may be monitored by sellers, while the prior resistance line may give intermediate rebounds. During Monday's Asian session, the AUD/USD re-establishes a fresh intraday high at 0.6960, erasing two-week-long losses.
In doing so, the Australian dollar pair validates a trend line breakthrough on the RSI (14) and a bounce off the resistance-turned-support line from June 08.
For the AUD/USD bulls, however, the junction of the 100-HMA and a downward sloping trend line resistance from Thursday at 0.6960 seems to be a formidable obstacle.
After that, a run-up towards the psychological al magnet at 0.7000 cannot be ruled out. However, the 200-HMA barrier encircling 0.7040 may pose a threat to purchasers in the future.
In contrast, the prior resistance line from early June, which was about 0.6875 at the time of publication, precedes the monthly low of 0.6850 to limit the AUD/short-term USD's decline.
In the event that the price falls below 0.6850, the multi-month low set in May at 0.6830 looks to be the final line of defense for pair buyers before the 0.6800 level flashes on the chart.
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