- AUD / USD rocks during the pre-European session on Friday.
- The pair is trading cautiously inside a symmetrical triangle awaiting a breakout.
- The MACD remains neutral with a decline in the bullish momentum.
AUD / USD is racking up modest losses on the last trading day of the week. The pair is moving within a very narrow trading range.
At the time of writing, AUD / USD is trading at 0.7745 down 0.04% on the day.
AUD / USD daily chart
On the daily chart, the AUD / USD pair follows shallow market movements from the previous session. The pair continues to consolidate in a 0.7730 to 0.7770 trading band. The formation of Doji candlesticks reflects the indecision of traders.
Significant trade action will be seen after the breakout of the symmetrical triangle in both directions.
AUD / USD is comfortably positioned above the 100-day Simple Moving Average (SMA) indicating a positive short-term bias. If the price holds above the intraday high at 0.7748, then it could touch the horizontal resistance level of 0.7800, which also coincides with the descending sloping line of the triangle.
A break of the bearish slope line would prompt bulls in AUD / USD to regain the May 12 high at 0.7847. In doing so, the price would then head towards the May 10 high at 0.7892.
Alternatively, the pullback in the moving average convergence divergence (MACD) could cause the price to take a lower path from a 100-day SMA at 0.7725.
Sellers would roll up their sleeves to retest the horizontal support level of 0.7700 followed by the May 4th low at 0.7674.