AUDUSD is finding some footing on the 50-day simple moving average (SMA) around 0.7605, after a near one-month retreat from the recently reached multi-year top of 0.7820. The Ichimoku lines are reflecting a pause in the climb, while the rising SMAs are preserving the bullish sentiment.
The ascent seems to be unharmed as the short-term oscillators are conveying a pickup in positive momentum. The MACD is holding above the zero mark, although having dwindled below its red trigger line, while the RSI is improving just below the 50 threshold. Furthermore, the stochastic oscillator is demonstrating positive divergence, signalling additional price gains.
If profound traction transpires off the rescuing 50-day SMA, initial upside friction could come from the blue Kijun-sen line at 0.7700 before the bulls challenge the resistance ceiling of 0.7781-0.7820. Conquering this obstacle could restore confidence in the pair fuelling a positive impetus towards the 0.7916 and 0.7988 peaks, from March and February 2018 respectively.
On the other hand, if sellers manage to dip the price below the 50-day SMA at 0.7605, early tough support could develop from the cloud’s upper surface and the 0.7461-0.7516 zone. However, if the pair deteriorates further, the 100-day SMA at 0.7397 and the neighbouring low of 0.7338 could attempt to terminate the decline.
Summarizing, AUDUSD’s positive tone should remain undamaged if the pair manages to remain above the 50-day SMA and the cloud. That said, a dive below the 0.7461-0.7516 could feed a deeper retracement.
