AUDUSD recorded an aggressive bearish rally over the past four days, reaching a fresh 13-month low of 0.7346 on Tuesday. Today, though, the pair is on the backfoot and the technical indicators seem to be mixed as the market could ease a little bit in the short-term.
In the daily timeframe, the RSI indicator is sloping slightly to the upside after the rebound on the oversold zone, while the MACD oscillator is currently increasing negative momentum below its red-trigger line and the zero line. Additionally, the simple moving averages (SMAs) are heading lower following the price action.
The medium-term picture is looking predominantly bearish at the moment and the next support level to have in mind is the 0.7325 barrier, taken from the low on May 2017. A drop below this area could open the way towards the 0.7160 hurdle, identified by the trough on December 2016.
A move to the upside may meet resistance near the intraday’s high around the 0.7410 resistance. In case of further gains, the price could touch the 0.7475 resistance, taken from the bottom on May 31. A jump above this level, the pair could meet the 40-SMA and then the 20-SMA at 0.7533 and 0.7541 respectively.
Overall, both the short- and medium-term outlooks are currently looking bearish, though caution is warranted in the near-term as there are signs of a possible small retracement to the upside.
