AUDUSD Takes a Breather, Despite Signals for Advancement

Technical analysis of Forex market

AUDUSD looks to be picking up again, something also mirrored within the short-term oscillators. The pair plotted gains above the supportive trend line drawn from 0.5506, with the latest move from 0.5979 extending past the simple moving averages (SMAs).

The MACD, although marginally below its red trigger line in the positive section, looks to move back above, while the RSI rises, as it re-enters the overbought territory. Furthermore, the upward slopes of the 50- and 100-period SMAs and the approaching bullish cross of the 200-period SMA by the 50-period one, could add more fuel to a new rally.

If buyers manage to push past the 0.6384 immediate hurdle, the 0.6448 level – that being the 61.8% Fibonacci retracement of the down leg from 0.7031 to 0.5506 – could interfere ahead of the restrictive trend line drawn from December 2019. Penetrating above this, the 0.6538 swing high of March 11 could deter the ascent from testing the region from the 0.6656 obstacle to the 0.6684 peak.

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On the other hand, if a negative tone evolves; initially limiting the drop is the 0.6302 level and the 50.0% Fibo of 0.6269 underneath. Following, the supportive trend line and the 200-period SMA around 0.6226 could challenge the decline ahead of the 0.6195 low. Steering the market lower, the 50-period SMA at 0.6166 could hinder the bears from reaching the 0.6115 – 0.6075 support zone, which includes the 38.2% Fibo of 0.6089 and the 100-period SMA.

Summarizing, in the near-term picture a bullish bearing exists above the ascending trend line and the 0.6195 low, and a break above 0.6684 could return a neutral bias in the short-term.