AUDUSD has climbed to a 3-year high tracing the upper Bollinger band and is currently tackling the 0.7988 high, stretching back to February 2018. Furthermore, the advancing simple moving averages (SMAs) are defending the prevailing bullish bias.
The short-term oscillators are transmitting no signals of fading in the bullish momentum. The MACD, some distance in the positive region, is rising above its red trigger line. The RSI and the stochastic lines remain positively skewed as they are rising in overbought territory, endorsing further improvements in price. Noteworthy is the %K line, which has yet to indicate any dwindling in positive momentum.
To the upside, extending their bullish run past the 0.7988 limiting barrier, buyers may face a tough resistance section from the 0.8094 level until the 0.8163 peak, identified in May 2015. The former happens to be the 261.8% Fibonacci extension of the down leg from 0.7413 until 0.6990 – an area reinforced by peaks from May 2015, September 2017 and January 2018. Should the bulls conquer this buffer zone, the next resistance could arise between the 0.8294 and 0.8375 boundaries.
Alternatively, if sellers resurface and steer the price down, initial support may develop from the region of 0.7712-0.7819, which also encapsulates the mid-Bollinger band and the 50-day SMA. If a deeper retracement materialises, the 0.7461-0.7563 zone could step into the spotlight, which is reinforced by the lower Bollinger band and the 100-day SMA. Additionally, marginally beneath this is another key support border at 0.7407.
In conclusion, AUDUSD’s bullish bias should hold firm as long as the price endures above the 0.7712-0.7819 support boundary and the rising SMAs.
