AUD/USD Price Analysis: Grinds near mid-0.6700s inside weekly bullish channel
- AUD/USD prints heaviest intraday gains since Friday despite recent inaction.
- Bullish chart formation, sustained trading beyond 0.6700 support confluence favor buyers.
- Multiple hurdles stand tall to test upside momentum.
AUD/USD reflects the market’s holiday mood as it treads water around 0.6750 despite posting the biggest daily gains in nearly a week during early Thursday.
In doing so, the Aussie pair seesaws inside a one-week-old ascending trend channel amid sluggish oscillators. Other than the channel formation and sluggish RSI, as well as MACD, the quote’s successful trading beyond the 0.6700 support confluence also keeps buyers hopeful.
However, 23.6% Fibonacci retracement level of the pair’s November 10 to December 13 upside, near 0.6775, guards the quote’s immediate upside.
Following that, the aforementioned channel’s upper line, around 0.6805 at the latest, could challenge the AUD/USD bulls.
In a case where the Aussie buyers cross the 0.6805 hurdle, multiple levels around 0.6820 and 0.6850 could probe the advances before highlighting the monthly peak of 0.6893 and the 0.6900 round figure.
On the flip side, pullback moves remain elusive unless the quote stays beyond the 0.6700 key support comprising the 200-Exponential Moving Average (EMA) and bottom line of the stated channel.
Should that happen, a quick fall to the monthly low marked in the last week around 0.6630 can’t be ruled out. Though, the 61.8% Fibonacci retracement level around 0.6580, also known as the “Golden Ratio”, appears a tough nut to crack for the AUD/USD bears.
AUD/USD: Four-hour chart
Trend: Bullish