Irrespective of the AUDUSD’s seven week old ascending trend-channel, which recently propelled the pair to test near two month highs, the 0.7260-80 resistance confluence, encompassing 200-day SMA and the seven month old descending trend-line, held its further upside captive. The pair seems presently witnessing pullbacks toward 0.7140 immediate support, including 23.6% Fibonacci Retracement of its May 2015 – January 2016 downside; however, its further decline below 0.7140 can be restricted by the mentioned channel’s support, around 0.7080. If the pair fails to respect 0.7080, it can quickly fall to 0.7000 psychological magnet prior to aiming the 0.6925-30 and the January lows of 0.6830.
On the upside, a clear break of 0.7280 can extend the pair’s rise to 0.7335-40, near to 38.2% Fibo, breaking which the channel resistance-line of 0.7365-70 could confine its advance. Should the pair surpasses 0.7370, also clears the 0.7400 mark, the 0.7440 and the 50% Fibo level, near 0.7500, may offer consecutive upside resistances to the pair before it could join the 0.7600 mark.
