AUDUSD is pushing up against the near 30-month high of 0.7483 as buyers look to extending the uptrend. Positive momentum is growing in the technical indicators and the rising simple moving averages (SMAs) are preserving the prevailing bullish picture.
The short-term oscillators display improving momentum. The MACD, in the positive region, is holding above its static red signal line, while the RSI is flirting with the 70 level. Moreover, advances in price are being endorsed by the stochastic %K line, which is pushing above its %D line.
If buying interest intensifies, instant resistance may occur at the upper Bollinger band at the 0.7483 mark. Climbing over this plotted multi-month high convincingly, the price may propel towards the 0.7623 level, which happens to be the 150.0% Fibonacci extension of the down leg from 0.7413 until 0.6990. Should buyers maintain confidence, the pair may run into resistance at the 0.7676 high from June 2018, before aiming for the 176.4% Fibo extension of 0.7737.
If the price fades from the upper Bollinger band, initial limitations to downside risks may arise from the 0.7338-0.7372 trench, which also contains the mid-Bollinger band. A deeper pullback from here may encounter the reinforced support region of 0.7220-0.7254, which encapsulates the merged and rising 50- and 100-day SMAs. Should this barrier fail to halt the decline, the pair may next hit the 0.7144 obstacle.
Summarizing, the short-term positive structure is safeguarded north of the 0.6990 base. Furthermore, AUDUSD’s positive charge remains sturdy above the mid-Bollinger band and the SMAs.
Origin: XM
