AUDUSD is remaining above the 20- and 40-day simple moving averages (SMAs), which are in the process of a bullish cross in the short-term timeframe, and it found strong support at the 50.0% Fibonacci retracement level of the down leg from 0.7030 to 0.5506 at 0.6270. The bullish correction mode got in place when the pair rebounded on the 17½-year bottom, achieved on March 19.
Looking at momentum oscillators, they suggest further increases may be on the cards. The RSI is above its neutral 50 line, detecting positive momentum, and is also pointing upwards. The MACD, already positive, lies above its trigger line.
If the market manages to pick up speed, the 61.8% Fibonacci of 0.6450 could offer nearby resistance ahead of the 200-day SMA which currently stands near 0.6685. A significant close above the latter would challenge the 0.6800 round number, raising chances for further bullish actions.
On the other hand, should prices decline, immediate support could be found around the 50.0% Fibo of 0.6270, which holds near the 40-day SMA. Then a leg below that, the pair could meet the 0.6213 and the 20-day SMA currently at 0.6165 before the focus shifts to the 38.2% Fibo of 0.6088. Steeper negative movements could hit the lower surface of the Ichimoku cloud and the blue Kijun-sen line around the 0.5985 support.
In the bigger picture, the pair is bearish as long as it holds below the 200-day MA. In case it violates this line and the six-month peak at 0.7030, bulls may take the upper hand.
