- The AUD / USD once again managed to attract declining purchases near 0.6400.
- The short-term technical set-up still seems to tilt in favor of bullish traders.
- A sustained move beyond the 0.6500 mark was necessary to confirm the upside bias.
AUD / USD continued to show some resilience near the 0.6400 mark and managed to regain positive traction on the first day of a new trading week. The ascent helped the pair recover much of the slide from the previous session, although they had difficulty bringing it back above 100 SMA hours.
The recent decline in the supply area of 0.6560-70 followed a formation of downward trend channels on the hourly charts and indicates further weakness in the short term. However, the oscillators of the daily chart have maintained their upward bias and support the prospects for the emergence of some downward purchases.
Consequently, any significant decline towards the 0.6400 mark could still be considered a buying opportunity. This, in turn, should help limit the decline near the support of the trend channel, which is currently anchored near the 0.6380-75 region.
During this time, bulls will likely wait for a subsequent purchase beyond 100 SMA hours before positioning themselves for a return to the key psychological mark of 0.6500. The obstacle mentioned marks the upper end of the trend channel, which, if lifted, could be considered a new trigger for bulls.
A convincing breakthrough in trend channel resistance has the potential to push the pair beyond the 100-day SMA, around the region of 0.6515, to the supply area of 0.6560-70. Acceptance above the 100-day SMA should pave the way for a reorientation towards the recovery of the figure of 0.6600.