AUDUSD is striving to extend above the curbing boundary of 0.7372-0.7422 after buyers re-emerged around a near 8-month low of 0.7289. The short-term picture suggests that sellers have gained the upper hand, which could be further confirmed by the completion of forthcoming bearish crossovers of the 200-day simple moving average (SMA) by the diving 50- and 100-day SMAs.
The Ichimoku lines are indicating a pause in negative pressures, while the short-term oscillators are transmitting mixed signals in directional momentum. The MACD below zero has nudged a tad beneath its flattened red trigger line, while the RSI has bounced off the 30 level. The stochastic oscillator has adopted a bullish tone, but is showing that upside forces will need to step up to shift the sentiment increasingly positive.
In an improving scenario, resistance may originate from the 0.7372-0.7422 capping barrier. Should buying interest persist, the bulls may then meet further restraints at the blue Kijun-sen line at 0.7465 and the nearby high at 0.7502. Piloting higher, significant upside limitations could transpire from the section of resistance of 0.7585-0.7645, which is fortified by the 50- and 100-day SMAs and the Ichimoku cloud.
If sellers resurface and steer the price down, initial support could arise from the 0.7289 low and the neighbouring boundary of 0.7220-0.7253. Another leg lower could then test the 0.7157 barrier. Should the pair sink even further, the support base of 0.6963-0.7020, formed over mid-July to the end of October, could attempt to dismiss the decline from gathering additional downward pace.
Summarizing, AUDUSD remains heavy beneath the 0.7500 border and far below the SMAs. For the pair to regain a positive vibe, the price would need to elevate above the 0.7645 mark and the cloud.
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
GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech
EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited.
Gold price holds steady below $2,400 mark, bullish potential seems intact
Gold price oscillates in a narrow band on Tuesday and remains close to the all-time peak. The worsening Middle East crisis weighs on investors’ sentiment and benefits the metal. Reduced Fed rate cut bets lift the USD to a fresh YTD top and cap gains for the XAU/USD.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Key economic and earnings releases to watch
The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days.