AUDUSD is moving above the 20-day simple moving average (SMA) and the 50.0% Fibonacci retracement level of the upward wave from 0.6170 to 0.7160 at 0.6660; however, the 200-day SMA around the 0.6760 resistance is acting as a crucial resistance level.
The market has been heading sideways over the last couple of weeks, with the technical oscillators suggesting that an upside retracement may be on the cards. The MACD is holding above its trigger line in the negative territory, while the RSI is pointing slightly up near the neutral threshold of 50.
On the upside, the price could attempt to overcome the 0.6760 barrier and retest the 38.2% Fibonacci of 0.6780, which if successfully broken, could open the door for the 50-day SMA at 0.6810. Should traders continue to buy the pair above that level, bringing the short-term uptrend into play, resistance could then run towards the 0.6857 mark and the 23.6% Fibonacci of 0.6920.
A reversal to the downside could find immediate support at the 50.0% Fibo of 0.6660, which overlaps with the 20-day SMA, while slightly lower the 0.6560 barrier and the 61.8% Fibo of 0.6545 could also come into view. If the latter fails to halt bearish movements, the next target could be the 0.6385 support.
Regarding the longer-term trading outlook, the trend has been bearish over the past two months and only a decisive close above the long-term descending trend line could resume the bullish picture.
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