AUDUSD has come under renewed selling pressure after the aggressive jump to the 20-month peak of 0.7280 earlier today. Despite the latest pullback though, the pair has not posted a fresh lower low, which makes one hesitant to trust further declines in the longer-timeframe for now.
Looking at momentum oscillators on the 4-hour chart, however, they suggest further declines may be on the cards in the short-term. The RSI is moving sideways in the overbought territory while the MACD is losing momentum above the trigger and zero lines.
If the bulls retake control, price advances may stall initially near the latest high at 0.7280 and 0.7290, taken from the high on December 2018. A potential upside violation of these levels would raise the likelihood for more advances. In such a case, the 0.7480 resistance, taken from the peak on July 2018 could act as barrier to the upside.
Alternatively, a decline could find support at the red Tenkan-sen line at 0.7315 before meeting the 0.7275 – 0.7290 strong support region, which coincides with the 20-period simple moving average (SMA). Even lower, the 40-period SMA currently at 0.7225 could come in focus.
Summarizing, AUDUSD may have a downside move in the 4-hour chart, though, in the medium-term, the pair is still in a bullish tendency.
