AUD/USD traded higher on Tuesday, after hitting support near the 0.7300 zone. Overall, the pair continues to trade above the tentative upside support line drawn from the low of November 2nd, and as long as this is the case, we would consider the near-term picture to be positive.
That said, in order to get comfortable with regards to a trend continuation, we would like to see a break above the 0.7340 barrier, which is marked as a resistance by the high of November 9th. Such a move would confirm a forthcoming higher high and may initially aim for the peak of September 1st, at 0.7414. If that hurdle is not able to stop the bulls from pushing the rate further north, we may experience extensions towards the 0.7465 zone, marked by the highs of July 25th and 26th, 2018.
Shifting attention to our short-term oscillators, we see that the RSI, already near its 70 line, has turned up again, while the MACD lies above both its zero and trigger lines, pointing north as well. Both indicators detect strong upside speed and support the notion for further advances in this exchange rate.
On the downside, we would like to see a decisive dip below 0.7220 before we start examining whether the bears have gained the upper hand. The rate would already be below the aforementioned upside line, while such a move would confirm a forthcoming lower low. The bears may then get encouraged to aim for the 0.7157 zone, which provided strong resistance on October 23rd and 28th, the break of which may extend the slide towards the 0.7100 barrier, defined as a support by the lows of October 23rd and 26th.
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