AUDUSD maintains a downtrend that started from the March high of 0.7748. The bearish medium-term outlook has not changed as the market remains below the 200-day moving average. The crossover of the 50-day moving average below the 200-day MA earlier this week is supporting a bearish view.
Meanwhile, MACD is below zero, also indicating bearishness in the market. The RSI indicator’s rise has stalled at 50, suggesting fading upside momentum in prices.
The key 0.7500 level appears to be a challenge for the AUDUSD, and is now acting as a strong resistance level. Failure to rise back above it soon could see prices head lower towards support at 0.7400. Falling past the May 9 low of 0.7328 would suggest that a lower high is in place at 0.7516 (hit on May 23). The market would see a resumption of the downtrend that started from 0.7748 and there is scope to target 0.7300 and 0.7160 (December 2016 low).
Only a move back above the key 0.7500 level and above the 200-day moving average would signal a shift from the current medium-term bearish picture to a more bullish one.
Interested in AUD/USD technicals? Check out the key levels
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