AUD/USD technical analysis: Sits at 2-week tops, bulls likely to target 0.70 mark
- The AUD/USD pair is placed at the top end of its daily trading range, or two-week tops, with bulls now eyeing a follow-through move beyond 50-day SMA.
- The fact that the pair is moving higher after forming a base near 61.8% Fibo. level of the 0.7022-0.6832 recent slide support prospects for an eventual breakout.
Meanwhile, bullish technical indicators on hourly/daily charts further add credence to the constructive outlook and set the stage for a further intraday positive move towards reclaiming the key 0.70 psychological mark.
The mentioned handle coincides with a short-term descending trend-line - extending from April 30 through monthly tops, and should now act as a key pivotal point for the pair's next leg of a directional move.
A follow-through buying would negate any near-term bearish bias and trigger a fresh bout of a short-covering move, lifting the pair further beyond monthly highs, around the 0.7020-25 region, towards testing the next major hurdle near the 0.7065-70 supply zone.
On the flip side, the 61.8% Fibo. level, near mid-0.6900s, now seems to protect the immediate downside, which if broken might accelerate the slide, though would still be seen as a buying opportunity and hence, limit the downfall near 38.2% Fibo. level support near the 0.6900 handle.
AUD/USD daily chart