AUD/USD climbs to fresh daily high around mid-0.6900s, upside potential seems limited
The AUD/USD pair builds on Friday’s late bounce from the 0.6870 area, or over a two-week low. This results in some positive traction gains on the first day of a new week. The steady intraday ascent extends through the early European session. And will push spot prices to a fresh daily high, around mid-0.6900s in the last hour. In this article, we’ll detail AUDUSD Weekly Technical Forecast for Aug 8th – 12th.
From a technical perspective, Friday’s sharp intraday downfall stalled near a descending trend-line resistance breakpoint. The following bounce and acceptance above the 50-day SMA favor bullish traders. Some follow-through buying beyond the 0.7000 psychological mark would reaffirm the positive outlook and pave the way for additional gains. The AUD/USD pair might then aim to surpass an intermediate hurdle near the 0.7060 region and aim to reclaim the 0.7100 mark. The momentum could lift spot prices beyond the 100-day SMA, around the 0.7115 area, towards testing the very important 200-day SMA, currently near the 0.7170 zone.
On the flip side, the 0.6940 horizontal level now seems to protect the immediate downside ahead of the 0.6910-0.6900 region. Some follow-through selling below the 0.6880-0.6875 support zone could make the AUD/USD pair a risk of challenging the 0.6800 round-figure mark. A convincing break below the latter would shift the bias in favor of bearish traders and expose the 0.6730 support. Spot prices could eventually drop to the 0.6700 mark en-route the YTD low, around the 0.6680 region set on July 14.
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