AUDUSD’s fresh plunge beneath its 200-day simple moving average (SMA) seems to have lost its power again, just shy of the support barricade of 0.7372-0.7461. That said, the 50- and 100-day SMAs are starting to turn downwards, endorsing negative price action, while the Ichimoku lines are suggesting bearish sentiment may soon pick up.
Currently, the short-term oscillators are promoting a bearish demeanour; however, it remains to be seen whether it is sustainable. The MACD is slightly underneath its red trigger line in the negative zone, while the RSI is making efforts to improve from the 30 level. The negatively charged stochastic oscillator is indicating sellers are in control for now, but some caution is warranted should the %K line turn upwards, as this may reflect the resilience of the nearby support.
At the moment, the pair is faced with immediate downside limitations, which could develop from the hard border of 0.7372-0.7461. However, successfully diving below this, sellers could then direct the price towards the 0.7253 and 0.7220 lows, from the first half of November 2020. If a deeper correction evolves, the bearish move could target the support base of 0.6963-0.7020, an area where buyers reinforced the broader uptrend.
If negative pressures fully subside at the 0.7372-0.7461 zone, buyers may find footing at this barrier, which could assist the pair in overcoming the early resistance zone from the red Tenkan-sen line at 0.7538 until the 0.7645 barrier. Next the bulls would need to conquer the vital 0.7700-0.7800 resistance section to gain upside momentum to test the 0.7890 high and the 0.7966-0.8006 resistance belt.
Summarising, AUDUSD’s positive structure will remain intact if the price holds above the 0.7372-0.7461 boundary.