AUD/USD recovers somewhat within upward sloping channel
AUDUSD rebounded off the 0.6625 support level, which is also near the lower boundary of the short-term upward sloping channel. Currently, the market is standing above the 20-day simple moving average (SMA) and is approaching a bearish crossover within the 50- and the 200-day SMAs near 0.6740.
Technically, the MACD oscillator is holding above its trigger line in the negative region, while the RSI is pointing upwards above the neutral threshold of 50, suggesting that more bullish moves may be on cards.
If the price action jumps above the SMAs, there is scope to test the 0.6790 resistance. Clearing this key level would see additional gains towards 0.6857. This is considered to be a strong resistance area which has been rejected a few times in the past. Rising above it would see prices re-test the 0.7030 peak.
If the 0.6625 support fails, then the focus would shift to the downside towards 0.6560. This level is the previous bottom and if it is breached, this would increase downside pressure and bring about a reversal of the trend. From here, AUDUSD would be on the path towards the 0.6385 low.
Overall, AUDUSD has been positive in the near-term since bottoming at 0.6560. In the long-term view, the price is appearing negative as it stands beneath the descending trend line.
Author
Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.
