AUDUSD has pushed back above the 0.7300 handle and is recouping previously lost ground following the pullback from the 0.7431-0.7474 resistance border. The longer-term SMAs continue to retain a negative bearing but the 50-day SMA, which has been developing a positive incline, is hinting that the positive trajectory in the pair is sturdy for now.
The short-term oscillators are mixed but are leaning slightly towards a continued upside development in the price. The MACD, in the positive region, is persisting above its red trigger line, while the RSI is improving in the bullish zone. On the other hand, the stochastic oscillator is signalling some weakness in its negative charge as its %K line turns marginally higher. However, traders need to keep in mind that the stochastic oscillator has yet to confirm that negative pressures have fully abated.
If the price reclaims additional ground, the upper Bollinger band at 0.7373 may test the potency of the renewed positive traction in the pair. Steering higher, the 0.7431-0.7474 resistance border could then try to cap price advances. In the event buyers conquer this barrier, the bulls may pursue an area formed between the October 2021 highs of 0.7531 and 0.7555 respectively.
Alternatively, if positive forces start to fade and the price withdraws back beneath the 200-day SMA at 0.7309, a profound negative force would be needed to avoid the pair finding its feet within a fortified buffer zone between the 0.7245 low and the 50-day SMA at 0.7195. This area is also overlapped by a potential supportive trend line pulled from the 18½-month low of 0.6967. Diving past this tough boundary, sellers may aim for the lower Bollinger band – residing at the 0.7094 trough – and the nearby 0.7051 low.
Summarizing, AUDUSD is sustaining a minor uptrend above the 0.7195-0.7245 support zone. To significantly reinforce upside momentum, the price would need to propel above the 0.7589-0.7645 barrier, while a decline beyond the 0.6963-0.7020 base would intensify negative pressures in the pair.
