AUD/USD Price Analysis: 50% Fibo. tests bulls on the way to 0.7180-85 key hurdle
- AUD/USD stays firmer around weekly top during three-day uptrend.
- Sustained break of two-week-old descending trend line, bullish MACD signals favor buyers.
- 200-SMA, 61.8% Fibonacci retracement level will challenge bullish momentum.
AUD/USD bulls attack key Fibonacci retracement level near the weekly top, up 0.12% intraday near 0.7135 heading into Wednesday’s European session.
The Aussie pair’s latest up-moves could be linked to the previous day’s upside break of a descending resistance line from January 20, as well as bullish MACD signals.
However, a convergence of the 61.8% Fibonacci retracement (Fibo.) of January 13-28 downside and 200-SMA, near 0.7180-85, becomes a tough nut to crack for the AUD/USD bulls.
That said, 50% Fibo. restricts the quote’s immediate upside near 0.7140 whereas a three-week-long resistance line near 0.7210 will test the pair buyers past 0.7185.
On the flip side, pullback moves may initially aim for the 0.7100 threshold before highlighting the weekly support line surrounding 0.7075.
Also defending AUD/USD bulls is the previous resistance line from late January, around 0.7055 at the latest.
AUD/USD: Four-hour chart
Trend: Further upside expected