UDUSD is ready to bounce off short-term key support
Be it double tops marked in March or the oversold RSI conditions, AUDUSD bears have a tough time keeping the reins. That said, the 0.7425-20 horizontal area puts a floor under the pair’s immediate downside, a break of which will direct bears toward the 0.7380-85 support confluence including the 200-SMA and 50% Fibonacci retracement level of the February-April upside. In a case where the pair sellers refrain from stepping back from 0.7380 support, a six-week-old upward sloping trend line near 0.7275 will be on their radars.
Meanwhile, the AUDUSD pair’s rebound remains elusive until crossing multiple hurdles around the 0.7535-40 area. Following that, the 0.7600 threshold and 0.7640 level may entertain buyers. It should, however, be noted that the pair’s run-up beyond the 0.7640 level will enable it to aim for the 0.7700 round-figure while easing crossing the recent high surrounding 0.7660.
Overall, AUDUSD prices are likely to recover but the bulls need validation and hence this week’s data/events will be the key.
