Technical Analysis: 100-bar SMA questions AUDUSD bulls

Technical Analysis: 100-bar SMA questions AUDUSD bulls

AUDUSD bulls shouldn't be cheering the pair's bounce off monthly support line even as market sentiment remains broadly upbeat. The reason is the pair's refrain from breaking 100-bar SMA, at 0.7175 now, as well as multiple upside barriers beyond 0.7200. Among them, the early-month tops surrounding 0.7240 precedes the recently flashed yearly high of 0.7274 will be the key. Additionally, the year 2019 top surrounding 0.7296 will act as an extra filter to the north.

Meanwhile, a downside break of the immediate support line, currently around 0.7140, may refresh the month's low near 0.7075. In doing so, a 50% Fibonacci retracement level of 0.7055 and July 15 high of 0.7035 will gain major attention ahead of the 0.7000 psychological magnet comprising 61.8% Fibonacci retracement.

Not only the contrasting signals from fundamentals and technical analysis but a lack of major data/events ahead of this week's Jackson Hole Symposium will also challenge the pair's near-term moves.

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