AUDUSD has been moving slightly sideways since the strong rebound on the decade low of 0.6746 on January 3. The pair has found significant resistance at the 38.2% Fibonacci retracement level of the downleg from 0.8135 to 0.6746 around 0.7275. In the short-term, the market could continue consolidating if the red Tenkan-sen and the blue Kijun-sen lines keep flattening below the current market price.
Regarding the technical indicators in the daily timeframe, the RSI remains flat as well near the neutral threshold of 50, while the MACD is weakening its momentum marginally above the zero line. Both are confirming the neutral structure in the price action.
Should the pair stretch north, the 38.2% Fibonacci mark of 0.7275 could provide support before the price touches the 0.7340 barrier, taken from the highs on November 2018. A step higher could bring the bullish sentiment back into play, sending the price probably towards 0.7390, which was a critical level back in December 2018.
On the other side, the minor bullish crossover of the 20- and 40-simple moving averages (SMAs) may halt downside movements currently at 0.7150. If traders continue to sell the pair, the price could fall until the 23.6% Fibonacci of 0.7070 and then until 0.7050, while steeper declines could send the market to rest near the 0.6825 support, registered on January 2016.
In the medium-term, AUDUSD is stable in a neutral mode confirmed by the flattening 50-day SMA suggesting that the sideway mode may not change any time soon.
Origin: XM
