AUD/USD Price Analysis: Battles key resistance on the road to recovery

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  • AUD/USD consolidates the stellar recovery below 0.7500
  • The aussie resistance aligns around 0.7490 where key averages coincide.
  • Hourly RSI has turned flat below the overbought region.

AUD/USD is consolidating its robust recovery from seven-month lows below 0.7500, as the bulls take a breather before the next push higher.

Looking at the hourly chart, the aussie’s recovery momentum dwindled after facing stiff resistance around the 0.7490 region on several occasions in the American session.

At that level, the 100-Hourly Moving Average (HMA) coincides with the 200-HMA, forming a tough barrier for the bulls.

The Relative Strength Index (RSI) has turned flattish while sitting just below the overbought territory, backing this recent consolidation in prices.

If the buying interest renews, then the bulls would take out the abovementioned resistance, opening doors towards the July 7 high of 0.7536.

AUD/USD hourly chart

However, a failure to recapture the 0.7490 supply zone could recall the sellers, triggering a fresh downswing towards the 50-HMA at 0.7450.

Further south, the upward-sloping 21-HMA at 0.7441 could come into play.

AUD/USD additional levels to watch

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