AUDUSD appears fixed, cramped between its 50- and 100-day simple moving averages (SMAs) and is adopting a short-term sideways demeanour. The steadied Ichimoku lines and the regulating 50- and 100-day SMAs back this view and may keep the price bound in a neutral phase for a while longer.
The MACD, slightly below zero, is above its red signal line opposing negative momentum but looks set to dip back under it. The stochastic oscillator maintains a strong negative bearing, while the RSI is slipping further in the bearish region, both promoting additional losses.
If sellers manage to slide past the tough 100-day SMA at the 0.7095 low, the pair may see obstruction develop from the 0.7005 crucial trough. Breaking this limit may meet support from the nearby 0.6963 level, that being the 23.6% Fibonacci retracement of the up leg from 0.5506 to 0.7413, and the neighbouring 0.6921 barrier. Diving deeper, the buffer zone of 0.6749 – 0.6806, which encapsulates the 200-day SMA, may attempt to terminate further declines towards the 38.2% Fibo of 0.6685.
Otherwise, if buying interest intensifies, early resistance may arise from the flat Ichimoku lines around 0.7166 and the 50-day SMA at 0.7208, followed by the 0.7242 adjacent high. Overtaking this and the cloud’s ceiling, the pair may jump for the 0.7344 boundary before targeting the near 25-month top of 0.7413. Hovering above, the 0.7452 to 0.7483 region of highs from July and August 2018, may attempt to impede further advances from reaching the 0.7623 point and the 0.7676 peak.
Concluding, should AUDUSD remain inhibited, the price may continue sideways, defending a neutral-to-bullish bias above the 100-day SMA. However, if the pair breaks below the 100-day SMA and the 0.7005 mark, negative moves may test the positive structure.
Origin: XM
