AUD/USD technical analysis: Uptick from near 8-month low may be short lived

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.