Technical Analysis: AUDUSD bulls have a bumpy road ahead

AUDUSD refreshes intraday low under 0.7400 threshold as covid woes escalate in Australia, taking down the overall risk sentiment amid pre-Fed cautious mood. The same reverse the Aussie pair’s breakout of a three-week-old resistance line, portrayed the previous day, by staying below a broad horizontal resistance area since July 09. Hence, the quote is likely to retest the previous resistance line, near 0.7355, before challenging a weekly support line around 0.7340. Should AUDUSD bears keep reins past 0.7340, the monthly low near 0.7288 will be on their radars.

Meanwhile, the stated resistance area surrounding 0.7400–7410 guards the quote’s immediate upside ahead of a descending trend line resistance from June 11, surrounding 0.7440. In a case where AUDUSD bulls manage to cross the 0.7440 hurdle, a 200-SMA level close to 0.7510 will be a tough nut to crack for the pair buyers. Hence, the bearish trajectory has multiple filters to the north and the risk-off mood keeps sellers hopeful.

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