FxWirePro: AUD/USD interim bulls active but struggling with unconvincing momentum, long-term bears active at sloping channel resistance

AUDUSD bulls taking support at 0.7586 levels to bounce back above 21DMA but minor resistance is seen at 0.7641 levels, bullish momentum is not visible despite last two days of attempts of bounce back.

Despite the serious slumps and slip below DMAs, bulls have managed to bounce back this week but break out above the resistance at 0.7641 (7DMA) would provide bullish momentum.

On the contrary, we’ve been seeing from the last couple of months the consolidation pattern struggling at 0.7688 levels (i.e. channel resistance), the major trend has been sliding in the sloping channel, for now, the bears linger around sloping channel resistance.

Upon decisive break-out above and its sustenance would serve this as a continuation pattern, otherwise, bears may resume and the major downtrend to prolong, the current prices are still restrained below 21EMA and channel resistance.

Stochastic and RSI have been indecisive for ongoing upswings but noise with strong momentum to signal buying interests on the monthly charts as they are converging to the ongoing upswings. MACD on monthly terms signal upswings may prolong.

Consequently, we could foresee the upside potential up to the next strong resistance at 0.7649 and 0.7719 marks, which means maximum upward travel of another 70-80 pips can be possible.

Hence, intraday and short-term speculators can eye on bullish targets.

Fundamentally Aussie edgy on inflation data that is scheduled be released today based on which Reserve Bank of Australia sends hints of further easing decision.

Trading tips:

Well, on intraday speculative grounds, one can use boundary binary options with ITM stikes of 40 pips above and OTM strikes 30 pips below for targets of 35-40 in between pips with ease. We prefer the boundary binaries as the bull swings have traveled for the day and as stated above next stiff resistance is seen within next 40-50 pips.