AUD/USD Remains Depressed

The AUD/USD made a bearish bounce from the previous high 0.6938, which has created a double top chart pattern. There is also the 61.8% Fibonacci retracement level right there as well, showing that area to be very difficult to overcome but if we can do so, that should send this market much higher. It looks as if the Australian dollar is trying to rally longer-term, as we move back and forth via the US/China trade deal.

The 50-day SMA is starting to turn to the upside and could offer a significant amount of support. A break above it could send this market towards the 200-day SMA (0.6907) and the above-mentioned key resistance area. A sustainable movement above 0.6938 will extend the rebound from 0.6670 to 100% projection of 0.6670 to 0.6929 from 0.6754 at 0.7013 next.

While deeper retreat could be seen, further rise remains mildly in favor as long as 0.6800 support holds. However, a clear break of 0.6800 will turn bias back to the downside for re-test 0.6754 support instead.

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