- AUDUSD may find support at 0.6800
- Stochastic and RSI suggest more declines
AUDUSD has found strong resistance at the 20-month high of 0.6940 and is retreating towards the immediate 20-day simple moving average at 0.6800.
The technical oscillators currently confirm the recent bearish correction. Following the pullback from the overbought area, the stochastic oscillator is moving lower, while the RSI is moving horizontally slightly above the neutral threshold of 50.
A move to the downside could drive the markets towards the 20-day SMA at 0.6800, ahead of the 0.6765 support level. If the selling interest continues, then the pair may challenge the 50-day SMA at 0.6714 and the 200-day SMA at 0.6620.
Conversely, an upside recovery may pave the way for a retest of the 0.6940 barrier. Slightly higher, the 200-weekly SMA, which stands at 0.6960, may pause the bullish rally before it meets the next resistance at 0.7030, registered on February 23.
In a nutshell, AUDUSD is creating downside retracement but the broader outlook remains strongly positive.
