AUDUSD is seeing a shift from the recent bullish bias after breaking below the key 0.77 level this morning. The pair staged a strong rally from the January low of 0.6826 to the April high of 0.7833.
Prices are now targeting another key level at 0.7600. This also happens to be the 23.6% Fibonacci retracement level of the upleg from 0.6826 to 0.7833. If this support fails, the next target support level would be the key 0.7500 level. If the market remains above this level, AUDUSD will maintain a neutral bias in the short term, in a broad range between 0.7500 and 0.7775.
The underlying market structure is still bullish. Technical indicators are not yet giving a strong indication of a shift to a bearish bias as the market is still above the Ichimoku cloud and above the 200-day moving average. MACD is still above zero in bullish territory. RSI is dipping below 50 though, indicating the risk of further downside momentum in the immediate term.
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