AUD/USD Price Analysis: Bounces off 21-day SMA to snap two-day downtrend

FX
  • AUD/USD eases from intraday high while keeping corrective pullback from 21-day SMA.
  • Bearish MACD, sustained break of 11-week-old trend line keeps sellers hopeful.

AUD/USD takes the bids near 0.7711, up 0.33% intraday, during early Tuesday. The Aussie pair dropped to the lowest in two weeks the previous day after extending the downside break of an ascending trend line from November 02. However, 21-day SMA triggered the quote’s bounce despite bearish MACD.

As a result, AUD/USD buyers should remain cautious unless the quote regains above the previous support line, at 0.7740, a break of which will eye for the 0.7800 threshold.

Though, a downward sloping trend line from January 06 and the monthly top, respectively, around 0.7805 and 0.7820, will be tough nuts to crack for the bulls afterward.

Meanwhile, a downside break of 21-day SMA, at 0.7687 now, may catch a breather around December 17 top of 0.7640 ahead of re-testing 50-day SMA, currently around 0.7525.

In a case where the AUD/USD bears dominate past-0.7525, highs marked during early December near 0.7480 can return to the charts.

To sum up, the AUD/USD gains are likely ephemeral unless regaining above the immediate resistance line, a break of which will restore the earlier uptrend targeting initial 2018 tops.

AUD/USD daily chart

Trend: Pullback expected

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