AUD/USD Technical Analysis: Looks to extend the momentum beyond 0.7100 mark/ 100-hour SMA Our preference: long positions above 0.7075 with targets at 0.7110 & 0.7130 in extension. Alternative scenario: below 0.7075 look for further downside with 0.7065 & 0.7055 as targets..
• The pair once again managed to find decent support and staged a goodish bounce from a support marked by a near three-week-old ascending trend-line.
• Slightly oversold conditions on the 1-hourly chart prompted some short-covering bounce and assisted the pair to reclaim the 0.7100 round figure mark.
• The mentioned handle coincides with 100-hour SMA and should act as a key trigger for bullish traders, supporting prospects for additional intraday gains.
• Oscillators on the 1-hourly chart have also started gaining positive traction and further add credence to the pair’s short-term constructive outlook.
• However, technical indicators on 4-hourly/daily charts held in the neutral territory and are yet to catch up with the positive move, warranting some caution.