AUDUSD has adopted a positive trajectory, improving slightly after pivoting at the 0.7055 low. The rising red Tenkan-sen line and the strengthening technical indicators endorse additional positive price action. Yet, the weakened slopes of the simple moving averages (SMAs) and their converging bearings are sponsoring an evolving horizontal picture.
The short-term oscillators reflect a slight increase in positive momentum. The MACD, some distance below zero, is rising above its red trigger line, while the RSI is struggling to reach the 50 mark. Furthermore, the stochastic oscillator maintains a positive tone promoting more advances.
Retaining the current upside direction, the pair may see initial hindrance come from the 0.7122 barrier. A step higher may meet the 100-period SMA at 0.7140 and the 50-period SMA, currently at the 0.7150 boundary. Should the bulls continue to climb above the lower band of the cloud at 0.7169, their efforts could be tested by the resistance section of 0.7190 – 0.7202, which also contains the 200-period SMA. Subsequently, a significant drive upwards would be required to surpass the heavy resistance zone of 0.7234 – 0.7253, which could turn the bias increasingly bullish, and on its way to the 0.7282 obstacle.
However, if sellers steer below the red Tenkan-sen line at 0.7092, early support may arise from 0.7070 until 0.7055. A dip under this trough may then hit the 0.7035 mark ahead of the two-month low of 0.7005. Sinking further could stretch the tumble in price down towards the support trench of 0.6963 – 0.6972.
Summarizing, the short-term bias remains neutral but skewed to the downside as long as the price remains below the SMAs and 0.7150 level.
