NEWS | 28 minutes ago | By Anil Panchal
- AUD/USD battles 0.7600, keeps recovery move from 0.7557 to print mild gains.
- Strong RSI conditions, not overbought, keeps buyers hopeful around 10-day SMA.
- Short-term horizontal resistance guards immediate upside, eight-week-old trend line offers nearby key support.
AUD/USD seesaws near 0.7590/95, after recently refreshing the intraday high to 0.7598, during early Tuesday. In doing so, the aussie pair rises 0.18% while taking rounds to 10-day SMA.
Considering the upbeat RSI conditions, coupled with the quote’s sustained trading beyond an upward sloping trend line from November 02, AUD/USD buyers remain hopeful.
Overall, bulls are likely to keep the reins, also backed by the risk-on mood amid the passage of the US coronavirus (COVID-19) aid package. However, holiday-thinned trading can keep the AUD/USD prices in check.
Read: USD/JPY trims early-Asian losses to eyes 104.00 as US stimulus headlines favor risks
That said, a clear break of 0.7640/41 horizontal resistance becomes necessary for the bulls before challenging June 2018 top near 0.7675.
On the contrary, a downside break of the stated support line, at 0.7541 now, needs to break 21-day SMA and a three-week-long rising trend line, respectively around 0.7520 and 0.7510, before recalling the AUD/USD sellers.
It should also be noted that the 0.7500 round-figure adds to the downside filters before challenging the monthly low of 0.7338.