AUDUSD has edged aggressively higher over the previous couple of weeks following the rebound on the 31-month low of 0.7084. The price reached the 0.7300 strong psychological level and hit the long-term descending trend line, which has been holding since January 26. The technical picture supports that the upside momentum is likely to continue in the short-term.
From the technical point of view, in the daily timeframe, the MACD oscillator is strengthening its movement above its trigger line and below the zero line, while the RSI indicator is sloping slightly to the upside near the threshold of 50.
If there are further positive pressures, a penetration of the diagonal line to the upside would shift the longer-term bearish view to more neutral one, driving the price until the 0.7380 resistance level. More advances could open the way towards the 0.7475 barrier, taken from the high on July 10.
However, should a downside tendency take form again, immediate resistance will likely come from the 20-day simple moving average (SMA) around the 0.7200 round number at the time of writing. A drop below this level would reinforce the downside risk and send prices until the 31-month trough of 0.7084. The next key support to watch is the 0.7000 handle, creating a lower low in the downward trend.
To summarize, the short-term bias is skewed to the upside, while in the long-term, AUDUSD maintains a clear bearish outlook.
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