Technical Analysis – AUDUSD consolidates below 0.74 but buyers intensify
- Anthony Charalambous
AUDUSD is currently pushing above the 50-period simple moving averages (SMAs) and the flattening Ichimoku lines at 0.7364. The falling 200- and 100-period SMAs are endorsing a negative price trajectory, while the slight uptick in the 50-period SMA is reflecting buyers’ efforts to fight back.
The Ichimoku lines are signalling dried up directional momentum, while the short-term oscillators are conveying weak and mixed signals as a clear price course has yet to evolve or begin to gain a lead. The MACD is a tad beneath its red trigger and zero lines, while the upward pointing RSI has nudged into the bullish territory. The positive charge in the stochastic oscillator is also promoting price improvements in the pair.
Clearly overstepping the 50-period SMA at 0.7364, the bulls may encounter a tough resistance border from the 100-period SMA, which is glued underneath the 0.7395 barrier, up until the 0.7416 obstacle. Should they conquer this, they may then drive the price of the pair towards the July 16 high of 0.7442 before facing the 200-period SMA at 0.7460. From here, a persistent upbeat mood could encourage buyers to break above the 0.7483-0.7503 resistance zone, and pilot the pair towards the July 7 high of 0.7533.
To the downside, preliminary support could arise from the 0.7328 and the 0.7316 congested lows. Should sellers retain the upper hand, they may target the near 8-month low of 0.7289 before dipping for the 0.7265 boundary. If negative pressures continue to grow, the price may sink towards the support region, formed between the 0.7221 trough and the inside swing high of 0.7197, both identified in November 2020.Summarizing, AUDUSD is currently edging sideways just above 8-month lows of 0.7289. A break above 0.7416 or below 0.7289 could establish a short-term price course.
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