AUDUSD is moving in a horizontal trajectory near the Ichimoku cloud and the short-term simple moving averages (SMAs), sustaining its bullish twinkle. The MACD has marginally stepped above its red trigger and zero lines, while the RSI paused its improving movement in the positive territory. It is noteworthy that the 20- and 40-day SMAs are looking ready to create a bullish crossover in the short-term timeframe.
If the price runs above the Ichimoku cloud and the 0.7840 barrier, buyers would be required to produce a more decisive push to meet the more-than-three-year high of 0.8006. In the event of additional gains, the 0.8130 hurdle, registered in 2018, could come into play.
If selling interest intensifies, direct downside constraints may be exercised by the 0.7570 support before tumbling to the 0.7464 barrier, which overlaps with the 200-day SMA. Should a deeper downside correction unfold, the bears could hit the 23.6% Fibonacci retracement level of the upward move 0.5505-0.8006 at 0.7415 ahead of the 38.2% Fibonacci of 0.7050.
In brief, AUDUSD has been exhibiting a neutral-to-bullish tone over the last two months, and the next direction could evolve with a break below 0.7570 or above 0.7840.
Origin: XM
