Forex world

November 18, 2022

AUDUSD bounces off 50-EMA

- AUDUSD snaps two-day downtrend, pares the first weekly loss in five.

- Two-day-old descending resistance line challenges buyers amid downbeat oscillators.

- Convergence of 200-EMA, fortnight-long ascending trend line appears a tough nut to crack for the bears.

AUDUSD remains mildly bid around 0.6700 as bears take a breather after a two-day downtrend during Friday’s Asian session.

In doing so, the Aussie pair keeps the late Thursday’s rebound from the 50-bar Exponential Moving Average (EMA) to trim the first weekly loss in five.

That said, the quote’s latest upside approaches a downwards-sloping trend line from Wednesday, around 0.6730, to convince buyers.

Following that, a run-up towards refreshing the monthly top, currently around 0.6800, can’t be ruled out.

However, the bearish signals from the Moving Average Convergence and Divergence (MACD) join the steady Relative Strength Index (RSI), placed at 14, to keep the sellers hopeful.

As a result, the quote’s pullback towards the 50-EMA, close to 0.6640 at the latest, appears more likely.

It’s worth noting, however, that the AUDUSD weakness past 0.6640 could quickly drag the pair towards the 50% Fibonacci retracement level of November 03-15 upside, near 0.6535.

Though, the 200-EMA and an ascending trend line from November 03, close to 0.6520 as we write, could challenge the AUDUSD bears afterward.

Overall, the AUDUSD price remains on the bear’s radar unless it stays below 0.67360 hurdle.

Trend: Limited upside expected

AUDUSD: Four-hour chart

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