AUDUSD broke the rising trend line to the downside earlier today, challenging the Ichimoku cloud in the 4-hour chart. This movement is confirmed by the simple moving averages (SMAs) as they are ready to create a bearish crossover and the MACD oscillator is heading south in the negative zone. On the other hand, the RSI indicator is sloping upwards in the bearish zone, suggesting an oversold market.
If the price rebounds on the cloud and move higher, it could find immediate resistance at the 40- and 20-period SMA currently at 0.6460 and 0.6490 respectively. Clearing these lines, the seven-week high of 0.6570 could come in focus as well.
In case of steeper losses, the market could drop towards the 23.6% Fibonacci retracement level of the upward wave from 0.5506 to 0.6570 at 0.5315. Below that, the area 0.6215-0.6250 could attract attention ahead of the 38.2% Fibonacci of 0.6160.
In the short-term picture, AUDUSD turned the bullish bias to neutral and any violation of the 38.2% Fibo of 0.6160 could shift this outlook to bearish.
