HomeContributorsTechnical AnalysisAUDUSD Bounces Near 0.69 Mark, But Bearish Risks Linger

AUDUSD Bounces Near 0.69 Mark, But Bearish Risks Linger

AUDUSD is confronting the falling red Tenkan-sen line at 0.6971 after finding fresh positive footing between the 0.6921 base, formed over the first half of July 2021, and the 0.6900 handle. Despite new positive forces, the falling simple moving averages (SMAs) are endorsing the negative picture that evolved around the beginning of April.

The Ichimoku lines are indicating that downward pressures remain active, while the short-term oscillators are reflecting mixed messages in directional momentum. The MACD is flattening, implying some dwindling in negative potency, while the positively charged stochastic oscillator, is promoting additional gains after the bounce in the pair. That said, the RSI is failing to improve towards the 50 threshold, revealing weakness in buying interest.

If the red Tenkan-sen line at 0.6971 caps additional advances, sellers could revisit the 0.6900-0.6921 support zone where the pair recently found its feet. If this region fails to curb sellers’ second attempt to push lower, the price may then meet the 0.6876 barrier before targeting the 0.6806-0.6832 support section, moulded by the lows over the latter part of June 2021. Should frail buying pressures remain scarce, the price could then test the June 2020 trough of 0.6776.

On the flipside, if buying interest intensifies, initial resistance could occur at the 0.7029 obstacle. If buyers overstep this barrier, the price may then encounter multiple upside constraints, operating within the region from the 0.7058 low until the 0.7100 handle. In the event buyers conquer this section too, the bulls could then try to cement confidence in the pair by recapturing the area beyond the 0.7135 high and the adjacent Ichimoku cloud.

Summarizing, AUDUSD is sustaining a negative bearing beneath the SMAs and the 0.7100 barrier. The bearish bias remains robust should the price fail to lift back above the 0.7029 obstacle.

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