#AUDUSD @ 0.62695 fades bounce off weekly support line inside 1.5-month-old bearish channel., @nehcap view: Gradual recovery expected (Pivot Orderbook analysis)

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• AUD/USD fades bounce off weekly support line inside 1.5-month-old bearish channel.
• Firmer oscillators defend buyers during the first weekly gain in six, 21-DMA adds to the upside filters.
• Yearly low, 21-DMA act as additional trading filters.

The pair currently trades last at 0.62695.

The previous day high was 0.6356 while the previous day low was 0.6228. The daily 38.2% Fib levels comes at 0.6307, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6277, expected to provide resistance.

AUD/USD prints mild losses while renewing its intraday low near 0.6265 during early Friday. In doing so, the Aussie pair retreats towards the one-week-old support line, after bouncing off the same on Thursday. Also keeping sellers hopeful is a downward-slopping trend channel established since September 07.

However, the recently bullish MACD signals, the first since mid-August, join nearly oversold RSI to challenge the AUD/USD pair’s downside past the aforementioned support line, around 0.6240 by the press time.

Even if the quote drops below 0.6240, the 0.6200 threshold and the yearly low of 0.6170 will act as extra challenges for the AUD/USD bears.

In a case where AUD/USD remains bearish past 0.6170, the aforementioned channel’s support line, close to 0.6050 at the latest, will be in focus during the south-run targeting the 0.6000 psychological magnet and April 2020 low near 0.5980.

Alternatively, recovery moves not only need to defy the bearish chart formation by crossing the 0.6305 immediate resistance but should also provide a daily closing beyond the 21-DMA of 0.6375 to convince buyers.

Following that, a run-up toward the monthly high of 0.6540 becomes imminent. It should be noted that the early September swing low near 0.6700 could lure the AUD/USD bulls past 0.6540.

Trend: Gradual recovery expected

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6272 at the time of writing. Pair opened at 0.6281 and is trading with a change of -0.14% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6381, 50 SMA 0.6654, 100 SMA @ 0.6798 and 200 SMA @ 0.7014.

The previous day high was 0.6356 while the previous day low was 0.6228. The daily 38.2% Fib levels comes at 0.6307, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6277, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6221, 0.6161, 0.6093
• Pivot resistance is noted at 0.6349, 0.6416, 0.6476

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