AUDUSD has pulled back beneath the Ichimoku cloud meeting the 50-day simple moving average (SMA) after a rally off a 9½-month trough, which formed at 0.7105. The longer-term 200-day SMA has yet to deliver a signal that negative forces are gaining an advantage. That said, the 50- and 100-day SMA’s prevailing bearish bearing remains intact for now, promoting sellers are at the wheel.
The Ichimoku lines are indicating a stall in the ascent, in spite of the upward pointing red Tenkan-sen line, while the short-term oscillators are conveying mixed messages in directional momentum. The MACD is a tad above its red trigger line and just over the zero mark, while the RSI is seeking to improve further with its rebound off the 50-level. The stochastic oscillator is holding a negative bearing and has yet to confirm a convincing positive backing for upside price action.
If the price finds some traction off the 50-day SMA at 0.7363, primary hindrance to climb higher could come at the Ichimoku cloud’s lower surface at 0.7409. Successfully hiking into the cloud, buyers may encounter an initial tough barricade from 0.7468 to 0.7502 followed by the 100-day SMA at 0.7529, residing at the cloud’s upper barrier slightly overhead. Triumphing over these borders, the price could make movements to challenge the reinforced resistance section of 0.7589-0.7645.
On the contrary, if sellers manage to drive the pair beneath the red Tenkan-sen line and the 50-day SMA, preliminary support may develop near the blue Kijun-sen line and the 0.7283 barrier. Another push down could hit the 0.7221 low, while stronger negative forces may test the 0.7105 trough. If selling interest persists, the support foundation of 0.6963-0.7020 may then receive some downside pressure.
In conclusion, AUDUSD’s recent headways are fading as the signs seem to be favouring the downside, making the short-term picture display a more negative bias.
