Bulls are on the lookout for 50-day SMA above 0.7320

AUD/USD prints fresh daily gains on Tuesday in the Asian trading hour.
Additional gains for pair if price breaks the psychological 0.7300 mark.
Consolidation near 0.7300 offers resistance for the bulls.

AUD/USD extends the previous session’s gains on Tuesday amid upbeat Australia Retail sales data. The pair opened lower but recovered swiftly to touch the intraday high of 0.7307. At the time of writing, AUD/USD is trading at 0.7302, up 0.25% for the day.

AUD/USD daily chart

Technically speaking, AUD/USD has come under selling pressure after testing the high of 0.7478 at the beginning of September series (September 3). The price took shelter near the 0.7220 with multiple bottom formations. Now, if price breaks above the descending trendline from the mentioned high level, it could meet the 50-day Simple Moving Average (SMA) at 0.7325 as the first upside target.

The Moving Average Convergence Divergence (MACD) trades below the midline with a bullish crossover. Any uptick in the MACD would open the gates for the high made on September 14 at 0.7374 followed by the 0.7400 horizontal resistance level.

Alternatively, if price reverses direction, then it could retrace to the previous day’s low of 0.7249. AUD/USD bears would then march toward the 0.7220 horizontal support level.

A daily close below the mentioned level could trigger a fresh round of selling toward the 0.7150 horizontal support level.