Bulls flirting with 200-day SMA, around mid-0.6600s

The emergence of some fresh USD selling assisted AUD/USD to regain traction on Thursday.
The set-up favours bulls and supports prospects for a move towards reclaiming 0.6700 mark.

The intraday USD selling pressure picked up paced during the early North American session and lifted the AUD/USD pair to fresh daily tops, around mid-0.6600s. The pair has now reversed a major part of the previous day’s modest pullback, with bulls attempting a fresh move up beyond the very important 200-day SMA.

Meanwhile, the recent appreciating move since the first half of April has been along an upward sloping channel, suggesting a well-established near-term bullish trend. The constructive outlook is further reinforced by bullish technical indicators on the daily chart, which are still far from being in the overbought zone.

Hence, a move beyond the 2-1/2-month-tops, around the 0.6675-80 supply zone, now looks a distinct possibility. The pair seems all set to aim towards challenging the trend-channel resistance near the 0.6715 region. Some follow-through strength will confirm a near-term bullish breakout and set the stage for additional gains.

On the flip side, the 0.6600 round-figure mark now seems to act as immediate strong support, below which the pair might correct to the 0.6525 horizontal support. Failure to defend the mentioned support might drag the pair to sub-0.6500 levels, a confluence region comprising of 100-day SMA and the lower end of the trend-channel.