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Retreats from 3-week old downward sloping trend-line resistance

  • AUD/USD struggled to build on the recent positive move to one-week tops.
  • The technical set-up warrants some caution before placing aggressive bets.

Having failed to capitalize on the previous session’s goodish positive move to one-week tops, the AUD/USD pair witnessed a modest pullback during the early European session on Thursday.

The pair started retreating from a resistance marked by a descending trend-line, extending from mid-January swing highs, which should now act as a key pivotal point for short-term traders.

Given the overnight sustained move above 200-hour SMA, for the first time since January 17, the technical set-up seems tilted in favour of bulls and support prospects for additional gains.

On the other hand, oscillators on the daily chart maintained their bearish bias and have again started drifting into the negative territory on the 1-hourly chart, favouring bearish traders.

Diverging technical factors warrant some caution before placing any aggressive bets for the pair’s next leg of a directional move ahead of Friday’s release of the closely watched NFP report.

AUD/USD 1-hourly chart

 

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