AUDUSD continues its fall as it hit a one-month low in today’s trading. Yesterday it declined by 1.35%.
As regards the short-term outlook, the RSI indicator is pointing to a bearish picture as it is currently below 50 at 41.
On the upside, a range of prices around the 0.76 handle (between 0.7580 and 0.7620) have proved to be key ones in the recent past and should prices head higher this range could provide resistance. Note that this range includes the 23.6% Fibonacci retracement level of the December 23 to February 23 upleg at 0.7602. Should this area be cleared, another key area recently has been the one around 0.7650. If the price continues moving up, the February 23 sixteen-week high would be eyed as well as another important resistance point.
On the downside, the 200-day moving average (MA), 38.2% Fibonacci level and the 50-day MA at 0.7525, 0.7518 and 0.7522 respectively are expected to form an important support area. Below this, the 50% Fibonacci at 0.7449 would come into focus.
Looking at the medium-term picture, the bearish cross recorded on December 19 when the 50-day MA moved below the 200-day one has been challenged when the price moved above both MAs. However, the sharp fall in price lately in combination with the convergence of the two MAs is setting a neutral outlook for now.
Overall, the short-term bias is bearish and the medium-term is neutral.
Origin: XM
