AUDUSD is extending today’s losses and is currently trading below the two-week high of 0.7265 hit on Wednesday.
The RSI turned lower after the pullback off the 50 level. At the moment, it continues to head lower in support of a negative short-term picture. However, the MACD oscillator is climbing above its trigger line, remaining in the negative region. The 20-day simple moving average (SMA) is crossing the 200-day SMA to the downside, indicating more losses.
Further declines may meet support around the 0.7050 level, this being a congested area between early February to early May that also halted declines. Not far below, support could occur around the 0.6990 barrier and the 18-month low of 0.6965.
On the upside, resistance could come around the bearish crossover of the SMAs at 0.7280. Higher still, the 0.7340 level would increasingly come into scope and not far above this point lies the 40-day SMA at 0.7360.
The medium-term picture continues to look predominantly bearish, with trading activity taking place below the SMAs.
