AUDUSD is tipping upwards again after setting a foothold around the 20-day simple moving average (SMA) at 0.6880 earlier this week.
Likewise, the RSI has avoided a drop below its 50 neutral mark, rotating northwards as well, while the MACD remains stable marginally above its zero and signal lines, both endorsing the positive momentum in the pair.
The 50-day SMA is currently constraining any additional increases at 0.6960. If it soon gives up, the door will open for the 0.7046 resistance zone, where the 38.2% Fibonacci retracement of the 0.7660 – 06680 downleg is placed. Above that, the price could advance towards the 200-day SMA at 0.7158 and the long-term descending trendline drawn from the 2021 top, which resumed its resistance role back in June.
In the event of a downside reversal, the bears will again push for a close below the 23.6% Fibonacci of 0.6912 and the 20-day SMA. If their efforts prove successful, with the price tumbling below the 0.6850 barrier too, the sell-off could proceed quickly towards the 0.6750 – 0.6710 key support area.
Summing up, AUDUSD is showing an appetite for some recovery, though only a sustainable extension above the previous high of 0.7046 would boost market sentiment.
