- AUD / USD rally to 0.7800 takes a breather.
- The pair remains higher after the breakout of the descending triangle on the daily chart.
- Strong support is seen at 0.7768, a key confluence area.
AUD / USD is retreating from weekly highs, consolidating below the 0.7800 level amid a broad bounce by the US dollar at the start of the European session on Wednesday.
Gold’s advance above $ 1,900, combined with the NZD rally fueled by the RBNZ’s upbeat decision, bolsters sentiment around the Aussie.
Looking ahead, USD price action could help determine whether AU / USD will rebound to the 0.7800 level. Various speeches and members of the Fed will remain in the spotlight amid the absence of top-notch economic data from the United States.
From a short-term technical perspective, AUD / USD has extended its rally following a break above the resistance of the downtrend line at 0.7770.
The breakout of the descending triangle was confirmed after the price settled above this level on a four-hour candle close.
Risks remain tilted to the upside for the pair, as the pattern’s measured target at 0.7879 remains on buyers’ radar.
However, the round level of 0.7800 must be broken in a sustained manner to allow for further gains.
The RSI has turned down while holding above the midline, showing the latest downward movement in prices.
If the pullback accelerates, the confluence of triangle resistance and the 100-period horizontal simple moving average at 0.7770 could come to the rescue of the AUD bulls.
Further down, the resistance of the SMA 100, now turned into support at 0.7759, could be put to the test.
AUD / USD 4-hour chart
AUD / USD additional levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
