Technical Analysis – AUD/USD finds wall above 0.6200

forex-news-audAUDUSD rebounded on the 17½-year low of 0.5506 on March 19 and sent the price slightly above the 0.6200 psychological mark, surpassing the 20-day simple moving average (SMA). The MACD oscillator is moving higher in the negative territory, holding well above the trigger line, however, the RSI indicator paused its positive momentum near its 50 level.

If the price successfully climbs above the 0.6213 barrier, it may find immediate resistance at the 50.0% Fibonacci retracement level of the downward wave from 0.7030 to 0.5506 at 0.6270 and the 40-day SMA currently at 0.6274. Slightly above this level, it could hit the 0.6310 barrier before a stronger rally towards the 61.8% Fibonacci at 0.6450.

On the opposite side, if traders sell the pair and the market extends the negative move below the 38.2% Fibonacci of 0.6088, it could see a flirt with the 20-day SMA at 0.6010 near the Ichimoku cloud and the 0.5985 mark. More losses could find support at the 23.6% Fibonacci of 0.5865 ahead of 2002’s low of 0.5506.

A downside run to the 17½-year low again could endorse the neutral outlook, while a step below this significant level could open the way for new negative adventures, confirming the bearish picture in the longer timeframe.

Origin: XM

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