AUD/USD technical analysis: Bulls challenge a 1-year old descending trend-line hurdle

The intraday positive momentum lifted the pair back closer to the 0.7045-50 supply zone - a key resistance marked by a one-year-old descending trend-l  |  18/07/2019 11:11
  • The AUD/USD pair caught some aggressive bids on Thursday after the latest Aussie jobs report for June pointed to a pickup in the full-time jobs growth.
  • The strong labour market report might have eased pressure on the RBA to cut rates immediately and provided a strong lift to the Australian Dollar.

The intraday positive momentum lifted the pair back closer to the 0.7045-50 supply zone - a key resistance marked by a one-year-old descending trend-line extending from highs touched in June 2018, Dec. 2018, Jan. 2019 and April 2019. 

The mentioned barrier is followed by the very important 200-day SMA - just ahead of the 0.7100 mark, which if cleared decisively will be seen as a key trigger for bullish traders and set the stage for a further near-term appreciating move. 

Momentum beyond the mentioned handle has the potential to lift the pair further towards reclaiming the 0.7200 handle, albeit the lack of progress in the US-China trade tensions warrants some caution before placing any aggressive bullish bets.

Alternatively, a rejection slide from the current resistance might continue to show some resilience near the key 0.70 psychological mark, below which the pair might turn vulnerable to head back towards challenging the 0.6900 round figure mark.

AUD/USD daily chart

fxsoriginal

 

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