AUDUSD recovers off a one-week-old falling support line.
In early Monday am Europe, the AUDUSD reverses from an intraday low to 0.6750. The Aussie pair so rebounds from its lowest levels in a week while rebounding off a one-week-old rising support line.
Aside from the short-term falling support line, the practically oversold RSI (14) line also supports the AUDUSD pair’s bullish bias. However, the quote’s recovery requires confirmation from the prior support line from July 06. Which was at 0.6750 at the time of publication. The 0.6750 barrier is strengthened by the Upside Fibonacci retracement of July 06-13.
If the AUDUSD price remains bullish above 0.6750, the 200-Hour Moving Average (HMA) around 0.6800. And a downward-sloping resistance line from July 14, close to 0.6830 at the latest, will challenge buyers before directing them to the previous monthly high of around 0.6900.
To gratify AUDUSD bearish, a downside breach of the aforementioned immediate support line, which is close to 0.6715 at the time of writing, will need to break the 61.8% Fibonacci retracement level of about 0.6710, commonly known as the golden ratio, as well as the 0.6700 round figure.
Following that, a drop to the late June swing low of approximately 0.6600 cannot be ruled out. In general, the Aussie exhibits a corrective rebound but remains on the bear’s radar as the important week begins.
https://voiceoftraders.com/analysis/audusd-remains-stable-following-conflicting-chinese-data
