Technical Analysis – AUDUSD rises from 0.6440 bottom
AUDUSD still holds below the downtrend line
But MACD and RSI suggest bullish correction
AUDUSD has been over performing over the last two sessions after the rebound off the 0.6440 support level. However, the market remains beneath the short-term descending trend line, which has been drawn after the price peaked at 0.6870.
Technically, the MACD oscillator is crossing to the upside of its trigger line in the negative territory, while the RSI, following the strong bounce off the 30 level, is currently moving horizontally below the neutral threshold of 50.
If the buying interest persists, immediate resistance could come from the 0.6540 resistance level, which overlaps with the 20-day simple moving average (SMA) and stands slightly above the falling trend line. More aggressive bullish movements could meet the 200-day SMA at 0.6563 ahead of the crucial area of 0.6620-0.6645, which encapsulates the 50-day SMA.
Alternatively, if there is a decline beneath the previous bottom of 0.6440, the pair may challenge the 0.6340 support, registered on November 10, before heading south at 0.6270.
To sum up, AUDUSD has been developing in a descending movement and only a significant climb above the 0.6620-0.6645 resistance zone may switch the outlook to a neutral one.
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