AUDUSD is carrying on with its rebound from the previous week with better impetus than it had before, within its extending pattern of decline. The price is currently approaching the 0.6900 mark and then the next key level to have in mind is the 0.7000 that may switch the bias to neutral.
The short-term bias appears to be bullish as the MACD keeps gaining ground above its red signal line, and the RSI is looking to be working its way up over its 50-neutral threshold, but there is still room for improvement.
If the pair is able to push higher, the 40-day simple moving average (SMA), which is located around 0.6950, may serve as a crucial point for more aggressive bullish movement. This is also just below the resistance at 0.6965 and the 0.7070 barrier. Moreover, the 200-day SMA at 0.7190 may garner some attention. If prices continue to rise, the resistance could approach the limiting range between 0.7280 and 0.7340.
In the event that the pair reverts back to a downward trend, investors may turn their trading first at the low point that occurred at 0.6680, which is the 26-month low, and then at the 0.6570 support, registered in May 2020. If the price continues to fall, the next potential support might occur somewhere close to the 0.6250 support level, which was taken from the bottoms in April 2020.
In the medium-term outlook, AUDUSD may remain increasingly pessimistic as long as it maintains its move within a descending channel and, more crucially, remains below the 200-day SMA.
