- AUDUSD remains beneath uptrend line and 200-day SMA
- Bearish wave on the cards
- RSI and stochastic suggest upside recovery
AUDUSD is recouping some losses today after the aggressive sell-off of the preceding three days, posting a new two-month low near 0.6520. The pair slipped beneath the medium-term ascending trend line and the 200-day simple moving average (SMA), shifting the outlook to bearish.
However, the technical oscillators are showing some signs of recovery. The RSI is ticking upwards in the bearish territory, while the stochastic is pointing up in the oversold zone, indicating a possible end to the end of the selling interest in the market.
In the event of an uptrend resumption above the 200-day SMA, the bulls might take a breather near the 50-day SMA and the 0.6645 resistance level. The broken ascending line from the March low might attract attention in the same region. Should it give way, the door will open for the 20-day SMA at 0.6720 ahead of the 0.6870 resistance.
Nevertheless, the pair has key levels underneath for protection against selling forces. The 0.6520 has been limiting downside movements, while a drop below it could take the market until the next support of 0.6340.
In brief, AUDUSD buyers are holding back after the latest bullish trendline breakout. On the other hand, sellers cannot head up either, as important support levels remain intact.
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