After an early November recovery from the cited important Simple Moving Average, AUD/USD bears notch another retreat from the 200-SMA (SMA).
Buyers of the AUD/USD pair are encouraged not only by the U-turn from the 200-SMA, which is now near 0.6680 as of press time, but also by an impending bull cross on the Moving Average Convergence and Divergence (MACD) indicator.
For the Australia Dollar purchasers, a successful run-up over the previous weekly start of approximately 0.6730 is necessary.
After that, a one-week-old horizontal resistance level near 0.6815 appears to be the last line of defense for the AUD/USD pair’s bears;
if it is breached, the quote could move in the direction of the convergence of the five-week-old ascending trend line and the monthly top, which is close to the round number of 0.6900.
On the other hand, a break of the 200-SMA level near 0.6680 might send the Australian dollar in the direction of the swing low from late November, which is close to 0.6585.
In the event that the AUD/USD bears breach the 0.6585 support, the 0.6551 top from November 2008 appears to be the main obstacle before triggering a southward move below the previous monthly low near 0.6272.
