AUDUSD remains depressed, US-China tensions

The AUDUSD is under mild bearish pressure and is aiming for 0.6650 in Asian trading on Easter Monday. China’s military simulation on Taiwan continues to undermine Australia, rekindling US-Sino tensions. In the face of limited liquidity, the US Dollar clings to post-NFP gains.

Aussie Technical Analysis

The AUDUSD pair is bouncing around 0.6670 as it looks for new clues to extend. The previous day’s rebound from the 61.8% Fibonacci retracement level of its March-April upside.

Even if the Australian dollar fails to extend the previous day’s recovery from the key Fibonacci retracement, also known as the “golden ratio.” A sustained downside break of the one-month-old ascending trend line. Now immediate resistance near 0.6690, keeps bears optimistic.

The recently easing RSI (14) line, indicating dip-buying, as well as the improving MACD line from bearish territory, pose additional challenges to AUDUSD buyers.

However, an upside breaks of the support-turned-resistance line near 0.6690 is not an open invitation to the AUDUSD bulls. As a convergence of the 50-SMA and the 38.2% Fibonacci retracement level is. The area around 0.6705 appears to be a difficult nut to crack for the bulls.

Following that, a 13-day-old horizontal area near 0.6755-60 may challenge the upside momentum.

On the other hand, the 61.8% Fibonacci retracement level of around 0.6650 serves as a short-term key support to keep an eye on during the AUDUSD pair’s recent decline.

If the Aussie pair remains bearish beyond 0.6650, multiple levels near 0.6630 can test sellers before leading them to the previous monthly low of near 0.6560.

AUDUSD Daily Trends