August 12, 2022 03:01 AM ET
By: AnalysisWatch
AUD/USD is rising around the intraday top at 0.7125 at the start of European trading on Friday, with the Australian pair staying within a one-month upward trend channel and rising for the third consecutive day.
It is worth noting that the quote is near the upper end of the mentioned channel amidst the near overbought RSI, which in turn suggests that the bulls are running out of steam as they set up for the biggest weekly gains since November 2020. This underscores the 0.7150 level for the bears.
However, the 50% Fibonacci retracement level of the June-July downtrend at 0.6980 is ahead of the aforementioned channel support line at 0.6930 and poses a challenge to AUD/USD's downside.
Another important support is the 200-SMA at 0.6895.
Alternatively, the AUD/USD pair's successful rise above the 0.7150 hurdle needs to clear the 78.6% Fibonacci retracement level at 0.7155 to steer the bulls towards the June high at 0.7282.
Overall, AUD/USD remains on the bulls' radar but could see a pullback