AUDUSD is trying to snap the four-monthly losing period as it is posting a positive December, surging more than 2.6% so far. The pair almost tested the ascending trend line, which is holding since last year, at the beginning of the month and is recouping some of its previous month’s losses. In addition, the price found as strong support the 50% Fibonacci retracement level, near 0.7475, with the low at 0.6820 and the high at 0.8125, and is moving towards the 23.6% Fibonacci level at 0.7816.
It is worth mentioning that AUDUSD successfully surpassed the 100 and 50-simple moving averages (SMAs) on the weekly timeframe and could extend its gains towards the 28-month high at 0.8125 in case of a climb above the 200-SMA, which stands near 0.7860.
An alternative scenario is a break of the rising trend line below the 0.7500 strong psychological level, which could open the door for the 61.8% Fibonacci level at 0.7325.
Remaining on the same long-term timeframe (weekly chart), the technical indicators are confirming the recent bullish move. The MACD oscillator is rising in the negative territory and is approaching the trigger line for a bullish crossover and the ROC oscillator is ready for a climb above the zero line, signaling further gains.
Turning our attention to the short to medium-term chart (daily timeframe), the momentum indicators are standing in the overbought zone with stronger momentum than before, signaling a possible near-term correction.
