AUDUSD is heading south after failing to have a closing day above the 0.7250 resistance and touching the 40-day simple moving average (SMA) lower. The MACD oscillator is losing momentum above its trigger and zero lines, while the RSI is sloping down near the neutral threshold of 50 in the short-term.
Further declines may meet support around the 20-day SMA at 0.7145 before tumbling to the 0.7050 support. Not far below, support could occur around the 0.6990 barier, while even lower the 18-month low of 0.6965 may act as a turning point for the bulls.
On the upside, resistance could occur around the 0.7250 barrier ahead of the 0.7315 high, holding well above the descending trend line. Higher still, the 200-day SMA at 0.7330 would increasingly come into scope, not far above this point lie a couple of other peaks from previous months as well.
The medium-term picture continues to look predominantly bearish, despite the latest upside move above the falling trend line in the previous couple of days.
