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MTrading Team • 2023-12-18

AUDUSD stays bullish beyond 0.6650 resistance-turned-support

AUDUSD stays bullish beyond 0.6650 resistance-turned-support

AUDUSD edges higher past 0.6700 after posting the biggest weekly gains since the mid-November. In doing so, the Aussie pair defends Wednesday’s upside break of descending trend line stretched from early February, now immediate support near 0.6650. The resistance break joins upbeat RSI (14) to keep the buyers hopeful. However, the MACD signals appear less bullish and RSI line also nears the overbought conditions. The same suggests limited upside room for the buyers to cheer, which in turn highlights May’s high of around 0.6820 as an immediate upside hurdle to trace. Following that, a 10-month-old horizontal resistance area surrounding 0.6900-6920 will be a tough nut to crack for the bulls.

Meanwhile, a downside break of the previous resistance line near 0.6650, now immediate support, could quickly drag the AUDUSD prices to the 200-SMA support surrounding 0.6575. It’s worth noting, however, that tops marked in late August and early September, as well as comprising December’s bottom, will challenge the Aussie pair’s downside past 0.6575 near 0.6525-20. Additionally, a seven-week-old rising support line near 0.6480-75 will act as the final defense for the buyers before giving control to the bears.

Overall, AUDUSD is likely to revisit the mid-2023 peaks during the year-end trading. The pullback moves, which are less likely, remain unimportant beyond 0.6475.

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