- December 9, 2020
- Posted by: Analysis Team
- Category: Forex News
- AUD/USD snaps three-day downtrend, wavers around intraday high.
- Strong RSI, sustained trading beyond 50-bar SMA keeps buyers hopeful.
Having recently refreshed intraday high to 0.7443, AUD/USD eases to 0.7438 while heading into Wednesday’s European session. Even so, the aussie pair prints the biggest gains since last Thursday while also reversing the course of the previous three-day declines.
The upside momentum takes clues from 50-bar SMA and strong RSI conditions inside a two-week-old rising wedge formation.
That said, the bearish chart pattern’s upper line, at 0.7460 now, gains the AUD/USD bulls’ attention, for now, ahead of the July 2018 peak near 0.7485 and the 0.7500 round-figures.
Meanwhile, the downside break of 50-bar SMA, at 0.7403 now, may bounce off the stated wedge’s support, currently around 0.7375, if not then the bearish pattern gets confirmed.
The same will direct AUD/USD sellers towards the monthly low near 0.7340 and the November 13 bottom surrounding 0.7220 during the additional south-run.
AUD/USD FOUR-HOUR CHART