AUDUSD is looking strongly bullish in the short term after surging above its 4-hour simple moving averages (SMAs). Prices hit a one-month high of 0.7786 and the technical indicators are all pointing to further positive momentum in the near-term.
The MACD is strengthening its momentum above its trigger line in the positive region, while the RSI is holding around the overbought zone.
Immediate resistance to further gains would likely come from the 0.7805-0.7819 area ahead of the 0.7915 barrier, registered in March 2018.
If, however, the strong upside momentum were to lose steam and if the pair were to reverse lower, support would initially come from the 20-period SMA, around 0.7745. Failure to hold above this level would switch the focus back to the downside and attention would increasingly turn to the 0.7717 support, around the 40- and 200-period SMAs. Even lower, 0.7650 could come next.
In the more medium-term picture, the bearish outlook recently shifted to a neutral one, however, the short-term is bullish after the bounce off 0.7580.
Origin: XM
