Technical Analysis – AUDUSD poised for an upturn
AUDUSD seems to have secured a strong foothold near 0.6735 and around its 20- and 200-day simple moving averages (SMAs), increasing optimism that the next bull run to 0.6900 could happen soon.
From a technical perspective, the pair could recoup some extra ground in the short term as the RSI has avoided a drop below its 50 neutral mark, turning softly higher in the aftermath. Likewise, the stochastic oscillator has changed direction to the upside.
Still, traders could maintain some caution as the tough descending line from April 2022 at 0.6860 could postpone the battle with the 0.6900 mark. If buying appetite boosts the price above the latter, the spotlight will shift to the resistance line, which connects the highs from April and June, at 0.6965. Snapping that barrier, the bulls may next take a breather around 0.7030 and then push towards the 2023 peak of 0.7157.
Alternatively, the pair could drift lower to re-examine its SMAs within the 0.6700-0.6735 territory. Failure to pivot there could activate strong selling pressures towards the former support zone of 0.6565-0.6595. If this cracks too, the pair may revisit June’s floor of 0.6455-0.6485.
In brief, AUDUSD could experience a positive session in the short term, though whether it will sustainably pierce through the 0.6900 resistance remains to be seen.
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