Technical Analysis: AUDUSD fades recovery moves inside monthly triangle

Technical Analysis: AUDUSD fades recovery moves inside monthly triangle

AUDUSD portrays sluggish sentiment on Tuesday but the US dollar weakness propels the quote towards the upper line of a short-term triangle. Given the upbeat RSI and receding bearish bias of MACD, bulls are up for a battle with a 0.7770 resistance line. However, a clear upside past-0.7770 will have to cross a five-week-old horizontal resistance around 0.7815-20 before challenging the monthly top surrounding 0.7890.

Meanwhile, fears of reflation and the Fed’s tapering may pull the AUDUSD prices back towards re-testing the stated triangle’s support line near 0.7705. Also acting as the key downside level is the 61.8% Fibonacci retracement of April-May upside moves, close to 0.7665. Should bears keep reins below 0.7665, the mid-April lows near 0.7585 should return to the charts.

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