AUDUSD is extending last week’s rebound above the 0.71 mark but with technical indicators showing little strength at the moment, it is still questionable whether the pair has the dynamics to fully recover February’s losses in the short term. The MACD is rising steadily above its red signal line and is in negative territory, and the RSI seems to be slowing positive momentum above its 50 neutral mark, while the red Tenkan-sen line is flat below the blue Kijun-sen line.
In case bullish forces persist, nearby resistance could be found around the 0.7200 round level, while slightly higher a more exciting battle could start between the 200-day moving average currently at 0.7266 and the previous peak of 0.7294. Should the bulls win, the rally may pick up steam towards the 0.7360 barrier, while a close above 0.7440, which is the 50% Fibonacci of the long downleg from 0.8135 to 0.6745, could be a sign of a broader bullish trend.
On the flipside, a move northward is expected to hit the area around the 23.6% Fibonacci of 0.7074. Another leg lower, could open the door for the 0.70 psychological level which if significantly broken, could eventually increase selling orders towards the 0.69 and 0.68 levels before the 0.6745 bottom comes into focus.
In the medium-term, AUDUSD is stable in a neutral mode within the 0.70-0.7392 area. The flattening 50-day MA suggests that the sideway run may not change any time soon.
