AUDUSD was unable to crawl above the upper boundary of its narrow 0.6820-0.6745 range despite Tuesday’s encouraging trade news.
In the short-term, the market may remain muted as the slow progress in the RSI and the gently rising MACD suggest a bearish-to-neutral bias, with the falling red Tenkan-sen also reducing the odds for an impressive gainful session. Yet the pause in the recent steep downfall and the following consolidation phase increase speculation that an upward correction may be nearing.
A rally above the 0.6820 resistance may last until 0.6864. Higher, the bulls could get busier within the 0.6910-0.6960 area, where any breakup could open the door for the 0.7000 mark.
Should sellers drive the pair below 0.6745, all eyes will turn to the 10 ½-year trough of 0.6676 registered last week. Further down, support is anticipated to arrive within the 0.6385-0.6400 zone taken from the highs and the lows during the 1993-1998 period.
Meanwhile, in the three-month picture (medium-term), a decisive close above 0.6864 is required to switch the outlook from bearish to neutral.