AUD/USD Trims Weekly Losses Ahead of US NFP, Despite Recession Concerns and RBA’s Dovish Stance

From a technical perspective, the AUD/USD’s dismissal of a one-month bullish channel and a bearish moving average crossover, indicated by the 50-day moving average (DMA) cutting through the 100-DMA from above, keeps sellers optimistic. The steady Relative Strength Index (RSI) (14) line further reinforces the bearish bias.

As a result, the currency pair’s recent rebound may be short-lived, as long as it remains below the aforementioned channel’s lower line, near 0.6690 at the time of writing.

In addition to the immediate 0.6690 resistance, the 0.6700 psychological level may also challenge buyers before they take control.

However, the 50-DMA, 100-DMA, and the top line of the specified channel, at approximately 0.6785, 0.6800, and 0.6820 respectively, could pose obstacles for AUD/USD bulls afterward.

On the flip side, an ascending support line from last November, close to 0.6620 at the time of writing, acts as a foundation for the AUD/USD exchange rate.

Subsequently, the previous monthly low of 0.6564, also the year-to-date (YTD) low, will attract market focus.