AUDUSD had been stuck in a steep downtrend since early March but managed to recoup some losses after bouncing at the 30-month low of 0.6169. However, the pair has been trading without clear direction in the last couple of daily sessions as its advance came to a halt at the 200-day simple moving average (SMA).
The momentum indicators are reflecting a loss of positive momentum. Specifically, the MACD histogram is softening but remains above both zero and its red signal line, while the RSI is pointing downwards in the positive territory.
Should buying pressures persist, the price could challenge the 200-day SMA, which temporarily rejected the pair’s recent advance. Conquering this barricade, further upside moves may cease at 0.7008 before the August high of 0.7136 comes under examination. Even higher, the June peak of 0.7282 might prove a tough obstacle for the price to overcome.
On the flipside, bearish actions could send the price to test the recent support of 0.6728. Sliding beneath that floor, the bears may aim at 0.6668 before the 0.6584 support appears on the radar. A break below the latter may trigger a retreat towards the 0.6546 resistance region.
Overall, AUDUSD appears ready to retest its recent rejection point as the short-term oscillators suggest that near-term risks remain tilted to the upside. Therefore, a break above the 200-day SMA could signal the resumption of the pair’s recovery.
