AUDUSD has powered back from its early December low, crossing above the 50-period simple moving average (SMA) and breaking its previous series of successive lower highs. However, the cautiously bearish outlook for the pair is maintained as the price is trading well below its 200-period SMA.
Short-term momentum indicators are reflecting a negative bias for the pair, as the RSI is located below its 50 neutral mark, while the MACD is found below zero and its red signal line.
Should the pair cross below its 50-period SMA currently at 0.7110, selling pressures could intensify, sending the price to test the 0.7091 support. A break below that point could open the door towards the 0.7062 barrier, before the bears shift their attention towards the strong 0.6990 level.
On the flip side, if the bulls resurface, initial resistance might be found at the 0.7176 obstacle. A step higher from there could send the price towards the 0.7226 barrier, before the buyers eye the 200-period SMA, currently found at 0.7250. A decisive move above the latter could turn the fortunes around for the pair, paving the way towards the 0.7276 level.
In brief, the outlook for the pair is cautiously bearish. For sentiment to change, buyers would need to break above the 200-period SMA.
