HomeContributorsTechnical AnalysisAUDUSD Bulls Step in But Caution Still Warranted

AUDUSD Bulls Step in But Caution Still Warranted

  • AUDUSD pivots higher near familiar support
  • Short-term risk remains skewed to the downside
  • Next resistance expected to emerge near 20-SMA

AUDUSD found shelter near the descending line drawn from December 2022 for the fifth time, avoiding any declines below the 0.6300 round level.

The RSI and the stochastic oscillators have deviated above their oversold levels, backing the recent rise in the price. Still, they haven’t exited the bearish area, keeping the focus on the 0.6395-0.6455 important resistance zone, where the 20- and 50-day simple moving averages (SMAs) as well as two constraining lines could reject any potential increases. Then the bulls will need to violate the downward path above 0.6520 and run beyond 0.6570 in order to meet the 200-day SMA at 0.6625.

Should the downtrend extend below the 0.6300 round-level and the critical support line, the price could initially seek protection near the 0.6200 mark and then within the 0.6100-0.6120 region last seen in April 2020.

Overall, AUDUSD has re-activated its bearish trajectory from mid-July earlier this week and a sustainable recovery above 0.6520 is now needed to eliminate negative risks in the market.

XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading