AUD/USD Price Analysis: Stays defensive around 0.6900 inside bullish channel

  • AUD/USD remains sidelined around four-month high, snaps two-day uptrend.
  • Eight-week-long ascending trend channel, sustained breakout of 200-DMA favor bulls.
  • Multiple Fibonacci retracement levels add to the downside filters.

AUD/USD struggles to defend the 0.6900 round figure as bulls retreat after poking the highest levels since late May the previous day.

Even so, the Aussie pair keeps Friday’s upside break of the 200-DMA inside a two-month-old bullish chart formation, namely ascending trend channel. Also keeping the AUD/USD buyers hopeful are the bullish MACD signals.

That said, the quote’s latest pullback could aim for the 61.8% Fibonacci retracement level of its June-October 2022 downside, near 0.6860, before challenging the 200-DMA support of 0.6838.

Should the AUD/USD prices drop back below the key moving average, a convergence of the 50% Fibonacci retracement level and lower line of the stated bullish channel could challenge the bears around 0.6730-25 before giving them control.

Following that, a slump toward the 38.2% Fibonacci retracement near 0.6600 can’t be ruled out.

Alternatively, the recent high near 0.6950 and the stated channel’s upper line, close to 0.6990 could challenge short-term AUD/USD buyers. It’s worth noting that the 0.7000 psychological magnet and late August 2022 swing high near 0.7010 act as additional resistances to test the pair’s upside momentum.

In a case where the AUD/USD price remains firmer past the 0.7010 threshold, the August 2022 peak of 0.7136 should return to the charts.

AUD/USD: Daily chart

Trend: Bullish