AUDUSD reverses the previous day’s losses while a bounce off 50-day and 100-day SMA confluence near 0.7730-25. Given the normal RSI conditions and strong support, the quote is expected to keep the recovery moves while trying to cross the key resistance line, around 0.7770, for one more time. While a clear break above 0.7770 enables the buyers to aim for 0.7815, any further upside will need to cross the 0.7820 hurdle to direct the bullish impulse towards May’s top near 0.7890.
On the contrary, a downside break of 0.7725 will aim for a 0.7675 level, comprising early April highs and May’s lows. It should, however, be noted that a clear south-run past 0.7675 won’t hesitate to refresh the monthly bottom below 0.7644. In the case where the AUDUSD remains bearish below 0.7644, which is less likely, 0.7585 and April’s low close to 0.7530 should gain the market’s attention.
On the contrary, a downside break of 0.7725 will aim for a 0.7675 level, comprising early April highs and May’s lows. It should, however, be noted that a clear south-run past 0.7675 won’t hesitate to refresh the monthly bottom below 0.7644. In the case where the AUDUSD remains bearish below 0.7644, which is less likely, 0.7585 and April’s low close to 0.7530 should gain the market’s attention.