AUDUSD is tackling the 0.7225 barrier as upside efforts persist after the recent bounce of the pair within the 0.6963-0.7020 critical support base, which is defending the broader positive structure. Despite the latest price improvements, the falling simple moving averages (SMAs) are sponsoring a bearish bearing.
The Ichimoku lines are indicating the upsurge in price action, while the short-term oscillators are suggesting bullish momentum is growing. The MACD, in the negative region, is progressing above its red trigger line showing negative forces are fading. The positively charged stochastic oscillator and the rising RSI are promoting additional gains in the pair.
If the price oversteps the 0.7225 barrier, a prompt zone of resistance could develop between the Ichimoku cloud’s upper band at 0.7273 and the 100-day SMA at 0.7296. If buyers manage to surpass this and overcome the cloud, they could then face the 0.7370 high before the approaching 200-day SMA at 0.7447 contests buyers’ efforts to improve.
On the other hand, if sellers manage to regain command and drive the price lower, initial downside friction could arise from the Ichimoku lines at 0.7156 and 0.7139 respectively ahead of the 0.7082 nearby low. If downside forces strengthen, the bears may target the 0.6963-0.7020 key support section. Should this foundation fail to negate bearish pressures from snowballing, the price could then meet the 0.6900 handle.
Summarizing, AUDUSD’s neutral-to-bullish tone is gaining might in the short-term timeframe. That said, downside risks have yet to fully subside, and a dive below the 0.6963-0.7020 floor could bolster negative tendencies.
