Analysis of the AUD/USD price: Retreats from nearby resistance line near 0.6785
The AUD/USD breaks a two-day gain as it retreats from a short-term downward-sloping resistance line early on Friday. Even so, the Aussie pair's downside is constrained by the market's laxity and the holiday spirit, so the quote is still only mildly offered at 0.6770 as of the time of publication.
Although it has recently been ignored, it should be noted that the MACD is probably tease the bears, which together with the quote's inability to pass the immediate hurdle to keep the sellers hopeful.
- Despite failing to cross a three-day-old declining resistance line, the AUD/USD declined after its 50-HMA rebound.
- Although 200-HMA is a difficult obstacle for sellers to overcome, the approaching bear cross on the MACD gives them optimism.
- For the bulls to retake control, 0.6800 must confirm.
However, the immediate fall of the AUD/USD pair is constrained by the 50-HMA level near 0.6755.
Traders will focus on the crucial downside level of 0.6718, which is comprised of the 200-HMA if the quotation breaches the immediate HMA support. A break of this level could swiftly push the Aussie pair towards the monthly low of 0.6629, which was just marked.
Alternatively, for the negative bias to be pushed back, recovery moves must cross the Wednesday falling trend line, about 0.6785. However, the weekly top that surrounds the round number 0.6800 serves as an additional filter to the north before allowing the AUD/USD bulls to enter.
Overall, the AUD/USD pair is still inactive even as the bears attempt to regain the upper hand.