AUDUSD looks to be forming a roof around the 0.7100 psychological level, which is also the 38.2% Fibonacci retracement level of the down leg from 0.7313 to 0.6966. The RSI and the MACD seem to have reached a bottom in bearish territory and are now changing direction to the upside.
Traders, however, would be more eager to engage in buying activities if the price manages to surpass the nearby resistance at 0.7100. If this is successfully breached, then the rally may next rest somewhere between the 50.0% Fibonacci of 0.7140 and the 0.7165 high. A close above these obstacles may be needed to push the price towards the 200-day simple moving average (SMA), which coincides with the 61.8% Fibonacci of 0.7180.
On the flip side, the selling pressure could accelerate again if the market deteriorates below the 23.6% Fibonacci of 0.7050. Such a move could next bring 0.6966 key barrier under the spotlight, which if violated could trigger sharper losses.
In the medium-term timeframe, the pair is in a bearish trend since January 13 and only a rally above the 200-day SMA would put the market in a sideways path.
