AUD/USD Price Analysis: Bulls managed to defend ascending channel support

• AUD/USD stages a modest intraday recovery from a three-month-old ascending channel.
• A modest bounce in the equity markets undermined the USD and remained supportive.
• Bulls need to wait for some follow-through buying before positioning for additional gains.

The AUD/USD pair managed to defend a support marked by the lower end of a three-month-old trading range and staged a modest intraday bounce on Thursday. The uptick was supported by a positive turnaround in the European equity markets, albeit concerns about rising coronavirus cases might cap gains for the major.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and remained supportive of the emergence of some dip-buying. However, the fact that oscillators on hourly charts – though have been recovering from lower levels – are yet to gain any meaningful traction warrant some caution for bullish traders.

Hence, it will be prudent to wait for some follow-through buying before positioning for any further appreciating move beyond the 0.6900 round-figure mark. Above the mentioned level, the pair is likely to confront some resistance near the 0.6925-30 region, above which bulls might aim to retest the 0.6975 supply zone.

On the flip side, the mentioned trend-channel support, around the 0.6845-40 region, might continue to protect the immediate downside. A convincing breakthrough will be seen as a fresh trigger for bearish traders. This, in turn, will set the stage for a slide towards challenging weekly lows, around the 0.6810 region.

Any subsequent weakness below the 0.6800 mark might now turn the pair vulnerable to accelerate the downfall towards the 0.6730 intermediate support en-route the 0.6700 mark. The downward trajectory could further get extended towards the very important 200-day SMA support, around the 0.6665 region.

AUD/USD daily chart

Technical levels to watch