AUDUSD is looking slightly bearish around 0.7100 in the short-term, after the pair pulled back off the two-year peak of 0.7413 on September 1. The RSI is turning lower in the negative territory, while the MACD is moving sideways below the zero level. Both are confirming the recent bearish correction of the long-term bullish picture.
In light of negative pressures, initial tough support could develop from the zone of the 0.7000 round number and the 23.6% Fibonacci retracement level of the up leg from 0.5506 to 0.7413 at 0.6960. Pushing under this level, the 0.6800 handle and the 200-day simple moving average (SMA) are coming next. Diving beneath this too, the 38.2% Fibonacci of 0.6685 may also attempt to halt further loss of ground.
If buying interest intensifies, resistance may originate from the 20-day SMA at 0.7133 and the 40-day SMA at 0.7192, which is currently holding inside the Ichimoku cloud. Overcoming this boundary, the price may jump for the 0.7250 barrier before moving towards the two-year high of 0.7413.
In brief, the short-term bias is bearish below the SMAs and the cloud. A break above 0.7413 could take the market higher, continuing the positive structure in the bigger picture.
