AUDUSD Maintains Positive Bias Beyond 0.7150 Level Despite US-China Optimism

AUDUSD Price Analysis – August 20

Thus far this Thursday the upside attempts in AUDUSD maintain positive bias beyond the 0.7150 level while buyers tend to find support around the 0.7150 regions, leaving the spot wavering in familiar ranges. Despite renewed optimism on the U.S.-China trade front and a broad-based withdrawal from the U.S. dollar, the spot has not retained higher levels.

Key levels
Resistance Levels: 0.7311, 0.7275, 0.7241
Support Levels: 0.7150, 0.7076, 0.6921
AUDUSD Long term Trend: Bullish
On the daily, the technical oscillators reflect the pair’s current drawdown indicating the waning of positive sentiment. The RSI, still in the positive area, is trailing cautiously beyond its midlines, while in bullish territory the moving averages 5 and 13 are dwindling.

Yet more rally to the horizontal resistance level upside (now at 0.7311) may be seen. It might stay the optimal scenario given it remains beyond the level of horizontal support (now at 0.6832). Continuous trading down here, though, may shift the emphasis back to a low level of 0.5506 afterward.
AUDUSD Short term Trend: Ranging
After hitting the 0.7275 level, AUDUSD stepped back rapidly and the intraday bias is transformed neutral. More increase may be seen as long as it maintains a support level of 0.7110. The 0.7275 level breach is to aim for a long-term horizontal resistance level of 0.7311.

However, the breach of the 0.7110 support level may indicate short-term topping given persistent bearish condition in 4 hour RSI. As best seen on the daily chart, intraday bias is turned back to the downside for a correction towards 0.6777 support level.

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