AUD/USD Price Analysis: Bulls await move beyond descending trend-line/50-DMA confluence

• AUD/USD attracted some dip-buying on Wednesday amid modest USD weakness.
• Bulls need to wait for a sustained move beyond the descending trend-line/50-DMA.
• Weakness back below the 0.6800 mark would negate any near-term positive bias.

The AUD/USD pair has managed to reverse an intraday dip to the 0.6915-0.6910 area and is now trading near the daily top. A goodish recovery in the global risk sentiment is undermining the safe-haven US dollar. This, to a larger extent, offsets Wednesday's rather unimpressive Australian consumer inflation figures and is offering some support to the risk-sensitive aussie.

From a technical perspective, spot prices, so far, have struggled to break through a descending trend-line resistance extending from the YTD peak in April. The said barrier coincides with the 50-day SMA and should act as a pivotal point. A sustained strength beyond would be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move.

The AUD/USD pair might then aim to surpass the 0.7000 psychological mark and test the next relevant hurdle near the 0.7060 region. The positive momentum could further get extended towards reclaiming the 0.7100 mark. Bulls could eventually lift spot prices to the 100-day SMA resistance, currently near the 0.7125 area, en-route the very important 200-day SMA, around the 0.7175 zone.

On the flip side, the 0.6900 mark now seems to protect the immediate downside ahead of the weekly low, around the 0.6880-0.6875 region touched on Monday. This is followed by support near the 0.6850 zone and the 0.6800 round-figure mark. A convincing break below would negate prospects for any further gains and shift the bias back in favour of bearish traders.

The AUD/USD pair would then turn vulnerable to accelerate the slide towards the 0.6730 area before eventually dropping to the 0.6700 mark. Some follow-through selling below the YTD low, around the 0.6680 region set earlier this month, would mark a fresh bearish breakdown and set the stage for the resumption of the prior/well-established downtrend.

AUD/USD 4-hour chart

Key levels to watch