AUDUSD is struggling to stretch north of the Ichimoku cloud and the 100-day simple moving average (SMA) after the price bounce within the 0.6963-0.7020 base. The SMAs are endorsing a bearish bias in the pair with the 100- and 200-day SMAs specifically safeguarding the one-year decline from the three-year peak of 0.8006.
Currently, the Ichimoku lines do not reflect strong driving forces, while the short-term oscillators convey a picture where positive momentum is gaining strength. The MACD is holding above its red signal line and looks set to nudge above the zero barrier, while the RSI is improving above its 50 neutral threshold. The positively charged stochastic oscillator is promoting upside price action.
If the immediate zone from the cloud at 0.7208 until the 100-day SMA at 0.7243 fails to defuse buying pressures, the bulls could target the 0.7314-0.7345 fortified resistance barricade, which is overlapped by a potential restrictive trend line drawn from the May 2021 high of 0.7890. In the event buyers overcome this barrier, they may then be encouraged to tackle the 0.7431 high and 0.7474 barrier, where another descending line – pulled from the 0.8006 peak – intersects.
If upside impetus diminishes, an initial support section could arise from the 50-day SMA at 0.7173 until the blue Kijun-sen line at 0.7139. If buyers are unable to generate positive traction in this zone, the price may then dip to test the 0.7086 and 0.7051 lows respectively, before sellers challenge once again the 0.6963-0.7020 foundation that has held since July 2020.
Summarizing, AUDUSD continues to exhibit a steady bearish trajectory beneath the longer-term 100- and 200-day SMAs at 0.7243 and 0.7345 respectively, and the 0.7314 high. That said, if the price triumphs north of the 0.7474 barrier, the optimistic outlook in the pair may be tested by the 0.7531 and 0.7555 nearby highs.
