Despite refreshing a 10-month high the previous day, AUDUSD failed to provide a daily closing beyond the monthly resistance line, around 0.7600 by the press time. The resultant pullback moves currently battle October 2021 high while teasing the bears. That said, overbought RSI conditions add strength to the latest retreat, which in turn suggests the quote’s further downside in a case where it provides a daily closing below the late 2021 peak surrounding 0.7550. Following that, 10-DMA and 21-DMA, respectively around 0.7520 and 0.7430, will lure the sellers. However, a convergence of the 50-DMA and an ascending trend line from January, near 0.7285-80, acts as a tough nut to crack for the bears.
Meanwhile, the Aussie pair’s sustained trading beyond the aforementioned resistance line, close to 0.7600, will need validation from the latest high around 0.7660 to convince buyers. In a case where AUDUSD buyers dominate past 0.7660, June’s top near 0.7780 and May’s peak of 0.7890 will gain the market’s attention during the pair’s further upside. It’s worth noting that the RSI conditions do signal a pullback before the further upside.
