AUDUSD has fallen since the day’s open. The pair is on its third straight day of declines, while today’s fall constitutes a near one-week low.
The RSI is pointing to a bearish short-term picture as it is currently at 42, below the 50 neutral-perceived level. The MACD histogram reinforces this view, as it is negative and below the red signal line.
The current level of the 200-day moving average (MA) at 0.7552 could offer some intra-day resistance. Notice that today’s price action briefly exceeded this level before dipping back below it. If the price moves higher, the 50-day MA which roughly coincides with the 0.76 handle (a potential psychological level) at 0.7601, might act as an additional barrier to the upside. Further above, the pair would eye the March 30 near one-month high of 0.7679 as another point of significance.
Should the price continue falling, the more than three-month low of 0.7472 from April 12 could provide support. If this fails to hold, the 0.74 handle further below might serve as a psychological level of support.
Regarding the medium-term picture, price action over the last month has not been supportive of the signal given by the bullish (golden) cross recorded in early March when the 50-day MA moved above the 200-day one. More specifically, prices appear to have been consolidating for a neutral outlook. Adding to this, the 200-day MA is currently flat.
Overall, the short-term bias is bearish and the medium-term is looking mostly neutral.
Origin: XM
