AUDUSD Slips Beneath 0.7200 but Upside Potential Stays Strong

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Azeez Mustapha

Updated: 13 October 2022

AUDUSD Price Analysis – August 6

AUDUSD declines from the intraday high of 0.7216 level to 0.7177 level, during early Thursday. Besides that, the pair register gains from the run-up to refresh a multi-month high at 0.7241 level for the third day in a row after the prior session. In the following trading session, the exchange rate may start rising higher, as the upside potential stays solid to 0.7295 high level.

Key Levels
Resistance Levels: 0.7295, 0.7241, 0.7200
Support Levels: 0.7150, 0.7076, 0.6921
AUDUSD Long term Trend: Bullish
In the European session, the AUDUSD bears emerged after the pair struggled to maintain its upsurge beyond the round figure at 0.7201. So, if the moving average 5 support is kept on, the bulls may re-attempt the round number.

A test of the daily chart initial support of the ascending trendline is then probably to be tested at 0.7150 level. A breach in which the level of horizontal support at 0.7076 might threaten the engagement of the bears.
AUDUSD Short term Trend: Bullish
Looking at the short-term oscillators, in the very near-term the optimistic momentum appears stalled. In the positive region, the 4-hour relative strength index retains some distance and floats slightly beyond its 50 regions, while the moving averages support the price.

If the upside traction builds, the fresh multi-month high of 0.7241 and the 0.7295 levels may give precise obstacles. Traders may switch their attention to the 0.7393 to 0.7485 highs while overtaking this obstacle layer. On the downside, a support level breach of 0.7076 would indicate short term topping.

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