AUDUSD is confronting the fresh near 30-month high of 0.7571, attempting to revive the upside trajectory, despite the mini-pullback in the pair. The bullish Ichimoku lines are sponsoring positive momentum, while the advancing simple moving averages (SMAs) are defending the predominant positive picture.
The short-term oscillators seem to be favouring an upside scenario. The MACD, some distance in the positive region, is fairly in-line with the flattening red trigger line, while the RSI looks to be in the process of stepping over the 70 level. Moreover, positive price action is being further promoted by the positive stochastic oscillator.
If buyers manage to clearly nudge over the multi-year peak of 0.7571, the pair may shoot for the 0.7608 high from back in June of 2018. Another leg up could then encounter the neighbouring 0.7626 barrier followed by the inside swing low of 0.7638. Surpassing these, additional gains may propel the price to challenge the region of highs of 0.7672-0.7692, stemming back to April until early June of 2018.
On the other hand, sliding under the red Tenkan-sen line at 0.7546, initial downside hindrance may arise from the 0.7519 low and the 0.7484 nearby border, where the blue Kijun-sen line currently lies. Retreating further, the 50-day SMA at 0.7454 could test the depth of the retracement ahead of the critical support section of 0.7400-0.7423. Diving below this zone, which is reinforced by the Ichimoku cloud and the 100-period SMA beneath, traders’ attention may then shift towards the trough of 0.7372.
In brief, AUDUSD sustains its bullish demeanour above the SMAs and the 0.7400-0.7423 key region. Holding above 0.7519 may boost the positive outlook, while a shift below the crucial zone of 0.7310-0.7350 could throw into question the improving bias.
Origin: XM
