Mon, Jan 18, 2021 @ 23:01 GMT
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AUDUSD Moves Sideways Below 0.6900, Positive Momentum In Medium Term

AUDUSD has been on the sidelines over the last two weeks as the 0.6975 resistance and the 0.6800 handle seem to be a real struggle for traders. Technically, the price could lose some ground in the short-term as the RSI is flattening below 50, while the MACD is flirting with its trigger and zero lines.

A pullback on bearish cross within the 20- and 40-period simple moving averages (SMAs) and the lower surface of the Ichimoku cloud could keep the pair beneath the 0.6900 mark, which is the 23.6% Fibonacci retracement level of the upward move from 0.6378 to 0.7065, sending the price for a retest of the 0.6800 level. Below this line, the 50.0% Fibonacci of 0.6720 could come into focus ahead of the 0.6685 support, shifting the neutral bias to bearish.

Alternatively, a jump above 0.6900 could meet the 0.6975 resistance. Exiting the channel, the 0.7040 hurdle and the 14-month peak of 0.7065 could take control.

In the medium-term picture, AUDUSD is gently pointing up over the past four months, framing a positive profile. A strong rally above 0.7065 would extend the upward pattern off 0.6378, making the outlook even more bullish, while a decisive close below 0.6800 would confirm the start of a downtrend.

In brief, AUDUSD could lose further steam in the short term, while in the medium-term the pair continues to hold a positive outlook.

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