AUDUSD is plunging from the almost three-year peak of 0.7907, recouping some gains of the previous sessions. The RSI is declining below the overbought zone, while the MACD is failing to improve the positive move, both suggesting a possible downside retracement. However, in trend indicators, the short-term simple moving averages (SMAs) are sloping upwards.
A downside movement could find support at the 0.7805-0.7820 area ahead of the 20-period SMA at 0.7798. Even lower, the 0.7780 barrier, which coincides with the 40-period SMA could attract attention before slipping to 0.7717 inside the Ichimoku cloud and near the 200-period SMA.
On the other hand, an upside move could meet immediate resistance at the almost three-year high of 0.7907 before climbing higher towards the 0.7990 hurdle, registered in February 2018.
Summarizing, AUDUSD has been in a positive tone over the last three weeks despite the latest downside movement.
Origin: XM
