AUDUSD has been underperforming in the past two days, diving to a one-month low of 0.7172 and remaining below the Ichimoku cloud and the short-term simple moving averages (SMAs). However, today, the price is ticking up again with the RSI mirroring this latest movement. The MACD is still moving downwards with strong momentum beneath its trigger and zero lines.
The next target to the downside is the nine-month low of 0.7103. At this stage the market would likely a resumption of the downtrend from the 0.7886 peak and put in place a lower low at 0.6990.
Upside moves are likely to find resistance at the 20- and 40-day SMAs around the 0.7300 psychological mark. There is an important zone between 0.7480 and 0.7500 so, rising above this area would help shift the focus to the upside towards the 200-day SMA at 0.7590. Breaking this level could see a re-test of the 0.7615 high and turn the bias to neutral.
In the short-term, the bearish phase remains in play, especially if prices continue to trade below the SMAs and the 0.7220 barrier. In the bigger picture, the market is neutral to bearish as long as the 0.7103 level holds.
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