AUDUSD is in the process to surpass the 20-day simple moving average (SMA) and the 0.7405 resistance. However, the pair has been developing within a horizontal trajectory over the last two weeks, with upper boundary the 0.7405 resistance and lower boundary the eight-month low of 0.7288.
According to the technical indicators, the MACD is surpassing its trigger line but is still holding below the zero line. Moreover, the RSI is flattening below the 50 level, mirroring the market price action in the near-term.
Any upside movements above 0.7405 could meet the 40-day SMA at 0.7478 ahead of the 0.7500 psychological level. If there are more increases the 200-day SMA at 0.7600 may pause the bullish rally before touching the 0.7615 barrier.
On the other side, a continuation of the descending tendency that started after the pullback off 0.7886 could meet 0.7288. Beneath the latter, the 0.7220 support and the 0.6990 level, registered in November 2020 may halt the negative bias.
Summarizing, AUDUSD fails to create a bullish correction as it is still trading beneath the SMAs. A climb above 0.7600 could shift the current negative outlook to positive.
Origin: XM
