AUDUSD bulls need to tackle 0.7320-25 hurdle to keep the reins

1 Sep 2021

AUDUSD bulls battle the key resistance, namely 200-SMA, during early Wednesday. Given the Aussie pair’s sustained rebound from the previous resistance line, not to forget successful trading above an eight-day-long rising support line, the buyers remain hopeful by the press time. However, overbought RSI conditions challenge the buyers, requiring a clear break of 0.7325 to keep the reins. Following that, 61.8% Fibonacci retracement of July–August downside near 0.7410 and the previous monthly top near 0.7425 should return to the charts.

Meanwhile, the aforementioned short-term support line near 0.7295 restricts the quote’s immediate pullback, if any, ahead of the resistance-turned-support of 0.7270. If at all, AUDUSD drops below 0.7270, the 0.7230 level may offer an intermediate halt during the likely fall towards the last month’s low surrounding 0.7125. Overall, AUDUSD is in the recovery mode after a two-month bearish performance.