AUDUSD turned below the six-week high that posted in the preceding week and it currently stands above the 20- and 40-simple moving averages (SMAs), which are ready to post a bullish crossover. The stochastic oscillator is ready to tick higher near the oversold zone, while the MACD oscillator points marginally to the upside, above zero and trigger lines.
If the market manages to pick up speed, the 23.6% Fibonacci retracement level of the downleg from 0.8135 to 0.7020, around the 0.7300 handle could offer nearby resistance to the bulls. A significant close above this level could raise chances for further increases, shifting focus to the 0.7380 barrier, taken from the high on August 21.
Alternatively, should prices decline and slip below the 0.7160 support level, which stands near the moving averages, it could drive the pair towards the critical area within the 0.7000 psychological level and the 0.7040 mark, which encapsulates the 33-month low of 0.7020.
To summarize, AUDUSD has been developing within a narrow range with upper boundary the 0.7300 handle and lower boundary the 0.7040 support in the short-term. A decisive close outside of this region would create a new clearer direction.
