AUDUSD is in an uptrend but is making a corrective move lower after hitting a high of 0.8124 last Friday. This was the highest level since May 2015. The key level at 0.8000 is expected to act as strong support.
The RSI and MACD oscillators are flat and are indicative of a loss in upside momentum for AUDUSD, which is expected to consolidate above 0.8000 support. A breach of this would target the August 15 low at 0.7807. Below this support, the 0.7724 level comes into view. This is the 50% Fibonacci retracement of the upleg from 0.7328 to 0.8124. A drop under this important level would shift the bias to a bearish one to target 0.7632 at the 61.8% Fibonacci. An extension lower would give scope to reach the May low at 0.7328.
Major resistance stands at 0.8124 which needs to be cleared in order for the uptrend to resume and target the next major peaks at 0.8162 and 0.8294.
Trend indicators are bullish and the 50-day and 200-day moving averages are positively aligned after the bullish crossover on July 14. Momentum oscillators are turning neutral, supporting the idea that the uptrend is easing (with a correction not to be ruled out) and is likely entering a neutral phase in the short term. The medium-term bullish trend remains intact.
