AUDUSD is currently around the mid-Bollinger band and price action has become constricted to the vicinity of the static simple moving averages (SMAs). The SMAs are now endorsing a horizontal market.
Moreover, the short-term oscillators are transmitting mixed signals in directional momentum. The MACD, in the positive zone, is slightly below its floating red trigger line, while the RSI is fighting to remain north of the 50 threshold. The bullish stochastic oscillator is mirroring an increase in strength in the pair and is endorsing additional gains.
If buyers manage to prod the price above the 100-period SMA at 0.7742, early resistance could arise from the 200-period SMA at 0.7755 and the high of 0.7765 overhead. Should upside impetus grow, the bulls may then meet the upper Bollinger band at 0.7790 before challenging the resistance band of 0.7813-0.7822. Price buoyancy from here could then test the 0.7847 and 0.7856 highs respectively.
Otherwise, if sellers steer the pair beneath the 50-period SMA at 0.7729, the price may then plunge towards the lower Bollinger band at 0.7682 before weighing on the support region of 0.7634-0.7644. Should this barrier fail to dismiss negative pressures from gaining pace, the pair may then aim for the 0.7584-0.7595 support section, involving multiple lows from early to mid-April.
Summarizing, AUDUSD is sustaining a neutral bias in the short-term timeframe and a break above 0.7765 or below the 50-period SMA at 0.7729, could rekindle directional price action. However, the pair’s broader positive outlook remains intact above the 0.7531 trough.
Origin: XM
