- AUDUSD posts several red candles
- Holds below the SMAs
- Technical oscillators hold in negative areas
AUDUSD has been in a bearish corrective mode during the week, penetrating the short-term uptrend line to the downside with strong momentum.
Entering the 0.6570 area has been a struggle over the past three days, and there might be another tough obstacle within the 38.2% Fibonacci retracement level of the up leg from 0.6338 to 0.6690 at 0.6555, but the bears may not give the battle yet according to the technical indicators. Specifically, the RSI is plunging below the 50 neutral mark and the MACD oscillator is diving beneath the zero level.
In the event the pair re-activates its uptrend above the 23.6% Fibonacci of 0.6605, which overlaps with the 50-period simple moving average (SMA) in the 4-hour chart, ahead of the 20-period SMA at 0.6625, which would shift the bias back to positive. Even higher, the bulls might head for the four-month high of 0.6690.
On the downside, the 38.2% Fibonacci of 0.6555 could come in focus before the market continues the selling interest towards the 0.6515-0.6520 support region, which encapsulates the 50.0% Fibonacci.
Overall, AUDUSD is changing the bullish bias to bearish in the near-term and only a climb back above the ascending trend line could resume the positive outlook.
