AUD/USD Price Analysis: Indecisive below 50-DMA within a rising channel
- AUD/USD remains flatlined below 50-DMA despite an upbeat mood.
- Markets switch to wait-and-see mode amid thin trading conditions.
- The path of least resistance appears down for the aussie traders.
AUD/USD is fluctuating between gains and losses, as traders are unable to decide on a clear direction amid a pullback in the S&P 500 futures from record highs.
On the other side, easing Omicron covid variant fears keep the buoyant tone intact around the aussie.
With holiday-thinned market conditions, however, traders are likely to remain cautious before placing any directional bets on the major.
Looking at AUD/USD’s daily chart, the pair is on a gradual uptrend after bottoming out earlier this month at 0.6993.
In doing so, the aussie has formed a rising channel pattern, with Monday’s rally curtailed by 0.7285, where the channel resistance converged with the 50 and 100-Daily Moving Averages (DMA).
At the time of writing, AUD/USD is trading flat at 0.7235, with the immediate upside seen capped by the mildly bearish 50-DMA, now at 0.7272.
Further up, the confluence of the channel hurdle and 100-DMA at 0.7292 will come into play once again.
The 14-Day Relative Strength Index (RSI) has turned flat while holding above the midline, suggesting that the bullish bias remains well in the books. Although it may not be a smooth ride for AUD bulls.
AUD/USD: Daily chart
On the flip side, Thursday’s low of 0.7195 is the level to beat for AUD bears, below which the additional downside will open up towards the 21-DMA at 0.7149.
Selling resurgence could put the channel support of 0.7130 at risk. A sustained break below the latter will confirm a downside breakout from the rising channel, fuelling a fresh downswing towards 0.7100.
AUD/USD: Additional levels to consider