AUD/USD is fluctuating between gains and losses, as traders are unable to decide on a clear direction amid a pullback in the S&P 500 futures from record highs.
On the other side, easing Omicron covid variant fears keep the buoyant tone intact around the aussie.
With holiday-thinned market conditions, however, traders are likely to remain cautious before placing any directional bets on the major.
Looking at AUD/USD’s daily chart, the pair is on a gradual uptrend after bottoming out earlier this month at 0.6993.
In doing so, the aussie has formed a rising channel pattern, with Monday’s rally curtailed by 0.7285, where the channel resistance converged with the 50 and 100-Daily Moving Averages (DMA).
At the time of writing, AUD/USD is trading flat at 0.7235, with the immediate upside seen capped by the mildly bearish 50-DMA, now at 0.7272.
Further up, the confluence of the channel hurdle and 100-DMA at 0.7292 will come into play once again.
The 14-Day Relative Strength Index (RSI) has turned flat while holding above the midline, suggesting that the bullish bias remains well in the books. Although it may not be a smooth ride for AUD bulls.
On the flip side, Thursday’s low of 0.7195 is the level to beat for AUD bears, below which the additional downside will open up towards the 21-DMA at 0.7149.
Selling resurgence could put the channel support of 0.7130 at risk. A sustained break below the latter will confirm a downside breakout from the rising channel, fuelling a fresh downswing towards 0.7100.
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