AUDUSD is battling the 20-day simple moving average (SMA) to create more gains, though the price is still holding above the 0.7405 support level. The RSI indicator is pointing upwards in the negative territory, while the MACD is surpassing its trigger line in the bearish zone. However, the pair is hovering well below the Ichimoku cloud and the red Tenkan-sen and blue Kijun-sen lines.
If the price overcomes the 20-day SMA, immediate resistance could come from the 200-day SMA at 0.7585 ahead of the 0.7615 resistance, which overlaps with the 40-day SMA. Breaking these lines, the 0.7775 barrier may pause the upside structure as it was acting as significant resistance in the previous sessions.
In the negative scenario, a move beneath 0.7405 could drive the market price until the next support at 0.7220, registered in November 2020. Steeper declines could open the way for a rest around 0.6990, achieved in November 2020 as well.
Summarizing, AUDUSD has been in a declining mode over the last two months, despite that in the last couple of days it has been trying to move higher.
Origin: XM
