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Technical Analysis: AUDUSD eases from weekly resistance inside monthly ascending channel

AUDUSD fades the previous day’s upside momentum as risks turn heavy amid the coronavirus (COVID-19) fears. The quote steps back from a downward sloping trend line from last Wednesday while staying inside an ascending trend channel formation established from December 17. Also portraying the bull’s dominance is the pair’s successful trading above 200-SMA. As a result, a short-term pullback towards the channel support of 0.7700 can’t be ruled out. However, any further weakness will direct AUDUSD sellers to attack 200-bar SMA, currently near 0.7550, ahead of highlighting the late December low near 0.7460.

Meanwhile, an upside clearance of the immediate resistance line, at 0.7775 now, will recall the 0.7800 threshold on the chart. Though, any further upside will have to cross the latest multi-month high of 0.7819 before challenging the stated channel’s upper line surrounding 0.7885. If at all the AUDUSD buyers defy the channel formation, by crossing the 0.7885 hurdle, the 0.7900 round-figure will add filters to the further rise. Overall, AUDUSD is well directed to the north but intermediate pullback can’t be ruled out.

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