Technical Analysis: AUDUSD bulls stay hopeful on crossing two-month-old trend line hurdle
Not only sustained trading beyond 100-day SMA but a clear breakout of a downward sloping trend line from early March also back the AUDUSD bulls to aim for a five-week-long resistance line, near 0.7810. It should, however, be noted that the monthly top near 0.7815 and March’s top high 0.7850 will test the quote’s upside past-0.7810. In a case where the AUDUSD buyers keep reins above 0.7850, a stellar rally towards the yearly top surrounding the 0.8000 psychological magnet can’t be ruled out.
Should bears take a risky entry and reverse the latest rise, the stated resistance line, now support around 0.7740, becomes the key to watch. Although bulls are likely to return from 0.7740, any failures won’t stop the quote to drop towards a 100-day SMA level of 0.7685 and the early April peak near 0.7675 during further weakness. Additionally, a monthly support line around 0.7640 acts as an extra filter to the south.