- AUD/USD braces for the biggest weekly gain since November 2020 inside one-month-old ascending trend channel.
- Overbought RSI conditions suggest pullback from the stated channel’s resistance.
- 200-SMA holds the key for bear’s entry, bulls can aim for June’s peak beyond 0.7150 nearby hurdle.
AUD/USD grinds higher around intraday top surrounding 0.7125 heading into Friday’s European session. In doing so, the Aussie pair remains inside a one-month-old upward sloping bullish trend channel while rising for the third consecutive day.
It’s worth noting that the quote is near the upper end of the stated channel amid the nearly overbought RSI, which in turn suggests that the bulls are running out of steam while bracing for the biggest weekly gains since November 2020. This highlights the 0.7150 level for the bears.
However, the 50% Fibonacci retracement level of the June-July downside, near 0.6980, precedes the aforementioned channel’s support line, close to 0.6930, to challenge the AUD/USD downside.
Also acting as important support is the 200-SMA level surrounding 0.6895.
Alternatively, the AUD/USD pair’s successful run-up beyond the 0.7150 hurdle will have to cross the 78.6% Fibonacci retracement level of 0.7155 to direct the bulls towards June’s peak of 0.7282.
Overall, AUD/USD is on the bull’s radar but may witness a pullback.
AUD/USD: Four-hour chart
Trend: Limited upside expected