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MTrading Team • 2023-07-20

AUDUSD reverses before 0.6680 key support on impressive Aussie data

AUDUSD reverses before 0.6680 key support on impressive Aussie data

AUDUSD remains on the front foot while printing the first daily gains in five after strong Australian employment data. The pair’s latest upside also justifies the upward-sloping RSI line, not oversold, as well as the bullish bias of the MACD signals. With this, the quote is likely to extend the north run toward May’s peak of around 0.6820 ahead of targeting the 0.6895-6900 resistance area comprising the tops marked in July and June, as well as the 61.8% Fibonacci retracement of February-May downside. In a case where the Aussie pair remains firmer past 0.6900, the odds of witnessing a rally past the 0.7000 psychological magnet can’t be ruled out. In that scenario, the 78.6% Fibonacci retracement level and the yearly peak, respectively near 0.7010 and 0.7160 can’t be ruled out.

Alternatively, the 0.6685-80 support confluence comprising the 50-DMA, 100-DMA and an upward-sloping trend line from late May appears the key challenge for the bears to conquer before retaking control. That said, the 38.2% Fibonacci retracement of around 0.6730 and the 0.6700 round figure is likely immediate supports to watch during the pair’s further fall. It’s worth noting that the bear’s dominance past 0.6680 won’t hesitate to challenge the monthly low of around 0.6590, a break of which will direct the sellers toward the year 2023 bottom, so far, marked around 0.6460 in May.

Overall, AUDUSD bears are in the driver’s seat but the trip towards the south needs an entry-pass from 0.6680.

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