AUDUSD is surpassing the 0.7340 barrier in the consolidation area of 0.7000-0.7413. The upside tendency this month started after the bounce off the 0.7000 psychological mark and more increases could come if there is a break of the upper bound of the channel.
The momentum indicators seem to in a horizontal mode. The RSI is flattening near the overbought territory, while the MACD is trying to extend its bullish structure above its trigger line. However, the 20- and 40-day simple moving averages (SMAs) are pointing upwards.
A successful advance above the trading range and the two-year high of 0.7413 could take the pair until the 0.7490 barrier, registered in July 2018 and the 0.7670 hurdle from June 2018.
On the other side, a drop lower could find immediate support at the 20- and 40-day SMAs at 0.7260 and 0.7187, respectively. Falling below these lines could take the pair towards the 0.7000 round number and the 23.6% Fibonacci retracement level of the up leg from 0.5506 to 0.7413 at 0.6960. Clearing these levels too, the 200-day SMA currently at 0.6845 could halt bearish movements.
Summarizing, AUDUSD has been in a trading range since July 21 and an increase above 0.7413 could confirm the long-term bullish structure.
