Recovers from two-month low but upside seems limited
The post Recovers from two-month low but upside seems limited appeared on BitcoinEthereumNews.com.
The AUD/USD pair stages a modest recovery from the 0.6870 region, or over a two-month low touched during the Asian session on Friday, amid a softer US Dollar (USD). Spot prices reclaimed the 0.6900 mark in the last hour, though the near-term bias seems tilted in favor of bearish traders and warrants some caution before positioning for any further gains. The USD edges lower after US President Donald Trump announced that he will delay strikes on Iran’s energy infrastructure and extended the deadline to reopen the Strait of Hormuz until April 6. Furthermore, the Reserve Bank of Australia’s (RBA) hawkish stance offers some support to the Aussie. That said, bets that the US Federal Reserve (Fed) would hike rates this year amid fears about rising inflation due to elevated energy prices should limit deeper USD losses and cap the AUD/USD pair. From a technical perspective, the recent breakdown below the 23.6% Fibonacci retracement level of the November 2025-March 2026 upswing and the lower boundary of a short-term trading range favor bearish traders. Adding to this, the Moving Average Convergence Divergence (MACD) indicator tracks below its signal line in negative territory, reinforcing fading upside momentum. Furthermore, the Relative Strength Index (RSI) around 40 signals building but not extreme bearish pressure. Meanwhile, the AUD/USD pair remains comfortably above the rising 100-day Simple Moving Average (SMA), which tempers the downside but does not negate the pullback. In the meantime, immediate support stands just above the 100-day SMA around 0.6820, with a decisive break exposing the 61.8% retracement at 0.6717 as the next bearish target. On the upside, the 23.6% retracement at 0.7005 aligns as the first barrier if buyers regain control. A daily close back above 0.7005 would ease the current downside bias and open the way toward the 0.7080–0.7120 band. That said,…
Filed under: News - @ March 27, 2026 5:15 am