AUDUSD has been paring some of the previous days’ losses since yesterday, following the rebound on the 0.7050 support level. Currently, the price is challenging the 40-simple moving average (SMA) in the daily timeframe, successfully surpassing the 23.6% Fibonacci retracement level of the downleg from the 32-month high of 0.8135 to the 10-year low of 0.6746, around 0.7070.
From the technical point of view, the Bollinger Bands have confined prices between the 38.2% Fibonacci of 0.7275 and the 0.7050 support barrier over the last few sessions. The RSI indicator is pointing upwards, approaching the bullish area, while the MACD oscillator is trying to strengthen its positive momentum in the negative zone.
Should prices edge higher, the mid-level of the Bollinger Band (20-SMA) could provide immediate resistance currently at 0.7157. Moving higher, the focus would shift to the 38.2% Fibonacci 0.7275 and the 0.7295 high, while more bullish actions could drive aussie/dollar towards the 0.7340 mark, identified by the peak on November 16.
In the alternative scenario, traders would be eagerly looking for a break below the 0.7050 support to increase selling orders. If that’s the case, the sell-off could last until the 0.6825 barrier, registered on January 2016. If bearish forces appear even stronger, the decade low should be another support to keep in mind.
In the long-term view, AUDUSD has been retaining its descending movement over the last year. Chances for a strong bullish tendency would only come if the pair breaks the 61.8% Fibonacci of 0.7600.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.