AUDUSD regain bullish momentum, aided by a weaker USD.
The AUDUSD pair finds support at the 50% Fibonacci retracement level of the May-June surge. And draws new buying during Tuesday’s Asian session. Spot prices have risen back over the 0.6700 round number in the recent hour. However further gains appear unlikely.
The US Dollar (USD) continues to struggle to break through the 50-day Simple Moving Average (SMA). And is on the defensive for the second consecutive day, which is seen offering some support to the AUDUSD.
However, the Federal Reserve’s (Fed) hawkish attitude, along with concerns about a global economic slump, may operate as a tailwind for the safe-haven buck, limiting gains for the risk-sensitive Australian dollar.
Technically, bearish traders should wait for a persistent break and acceptance below the 50% Fibo. mark before making further bets. Given that oscillators on the daily chart are in negative territory, the AUDUSD pair may potentially accelerate its decline towards the 61.8% Fibo. support, which is located around the 0.6625 level. This is followed by the 0.6600 level, which, if firmly violated, will lay the scene for more depreciation.
Any further move higher, on the other hand, is more likely to encounter firm resistance at the 38.2% Fibo. level, about 0.6730. A persistent rise over this level will indicate that the current corrective slide from the 0.6900 level, or a nearly four-month high, has completed and will tip the scales in favor of optimistic traders.
The AUDUSD pair might then attempt to retake the round figure of 0.6800, which corresponds to the 23.6% Fibo. level.
