AUDUSD has been showing improvement over the last couple of days, taking the market above the 20-day simple moving average (SMA). The MACD oscillator is rising above its trigger line in the negative region, while the RSI is ticking higher above the neutral threshold of 50. The red Tenkan-sen line is also moving higher, suggesting an upside correction.
Immediate resistance to further gains would likely come from the 0.6550 resistance ahead of the 50-day SMA at 0.6590. If there is a successful break above this line, further resistance could be met around the 0.6680 barrier before testing the long-term descending trend line near 0.6760, which is also near the upper band of the Ichimoku cloud.
If, however, the strong upside momentum were to lose steam and if the pair were to reverse lower again, support would initially come from the 30-month trough of 0.6170. Failure to hold above this level would switch the focus back to the downside and attention would increasingly turn to the 0.5980 support, registered in March 2020.
In the long-term picture, the bearish outlook remains intact; however, in the very short-term, the bias is turning slightly higher.
