AUD/USD breaks trendline; golden cross forms, targets 0.7130

AUD/USD cleared a daily descending trendline and produced a golden cross on the 4-hour chart while holding 0.7000 as intraday support. The pair is testing resistance near 0.7080, with 0.7130 and the year-to-date high near 0.7187 identified as subsequent resistance levels.

On the daily chart, the pair recovered from a late-March low near the 100-day moving average at about 0.6833. Price broke the primary descending trendline that began at this year’s highs. A daily close above 0.7080 would permit a retest of 0.7130 and then the 0.7187 level.

On the 4-hour timeframe, the 50-period moving average has crossed above the 100- and 200-period averages, creating a golden cross. The 4-hour Relative Strength Index is around 66. Price shows a V-shaped recovery from late March and the 0.7000 level has flipped from resistance to support.

On the 1-hour chart, the pair recently broke out of a range between roughly 0.7034 and 0.7080. Intraday moving averages are aligned higher. Immediate support levels are 0.7034, 0.7000 and 0.6913. Key resistance levels are 0.7080, 0.7130 and 0.7150. Hourly momentum indicators show bearish divergence on the recent ascent.

Analyst Zain Vawda noted the concurrence of the daily trendline breakout, the 4-hour moving average crossover and the intraday range break, and he added that a sustained daily close above 0.7080 would act as confirmation for further upward movement.

The recent price action follows corrective moves earlier in the year. Market participants are monitoring price behavior at the listed support and resistance levels for indications of continuation or pullback.