- AUDUSD remains in bullish territory
- 50- and 200-day SMAs ready for bullish cross
- Stochastic looks oversold
AUDUSD is recouping some losses of the preceding four red days after it found strong support at the 20-day simple moving average (SMA).
Given the current positive momentum, the question now is whether the pair will stay resilient above the 0.6690 key region. A clear step below it would wipe out today’s boost, pressing the price back to the 50- and the 200-day SMAs at 0.6580, which are ready to post a bullish crossover. Slightly lower, the ascending trend line near 0.6550 and the 0.6520 barrier could come next, within the Ichimoku cloud.
Technically, the short-term risk is leaning to the upside. The stochastic oscillator is heading upwards, indicating a bullish crossover between its %K and %D lines in the oversold area, while the RSI indicator is pointing upwards above the 50 level.
In the positive scenario, traders may wait for a close above the 0.6870 barrier and more importantly, beyond the 0.6895 barricade, taken from the peak on July 13.
To sum up, the latest upside move in AUDUSD has not excited traders yet. An extension towards the previous high is still required to make the upturn look more credible.
.){kind=link}