Range Markets

  • AUD/USD remains well-bid, refreshes intraday top following the previous day’s bounce.
  • Recovery in Momentum indicator also backs the bulls.
  • 200-SMA, 61.8% Fibonacci retracement level become the key support.

AUD/USD takes the bids to 0.7738, up 0.41% intraday, during early Wednesday. In doing so, the quote justifies the previous day’s U-turn from 61.8% Fibonacci retracement of April 13-29 upside, not to forget 200-SMA, amid a recovery in the Momentum line.

It should, however, be noted that a downward sloping trend line from April 29, around 0.7745, guards the pair’s immediate upside.

Following that, the monthly top near 0.7770 and the 0.7800 round figure may entertain AUD/USD buyers before pushing them to the previous month’s top near 0.7820.

Meanwhile, pullback moves may initial battle 50% Fibonacci retracement level of 0.7700 before retesting the late April lows near 0.7690.

Though, any further downside past-0.7690 will have to close below the 200-SMA level of 0.7685, as well as 61.8% Fibonacci retracement level near 0.7670, to recall the AUD/USD bears.

To sum up, AUD/USD is likely to stay in the recovery mode but a bumpy road can’t be ruled out.


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