AUDUSD has been advancing since March 19 but over the last month, it has been moving sideways below the eight-month peak of 0.7275 achieved on August 19. Currently, the pair is developing slightly above the short-term simple moving averages (SMAs) and the stochastic is approaching the overbought territory, however, the MACD is confirming the recent neutral mode and is losing momentum in the positive zone.
If there is an attempt above the eight-month peak, immediate resistance would come from the 0.7395 barrier, taken from the top on December 2018. Breaking this line, the July 2018 high could come into spotlight at 0.7490.
Alternatively, any decreases below the SMAs could send the market to the 0.7067 support, which stands inside the Ichimoku cloud. Beneath that, the 23.6% Fibonacci retracement level of the upward wave from 0.5506 to 0.7275 at 0.6858 is coming next ahead of the 0.6800 handle and the 0.6685 support, around the 200-day SMA.
In conclusion, AUDUSD retains a bullish structure and this scenario would be endorsed only if there is a climb above the recent high.
