Technical Analysis – AUDUSD spikes after soft US CPI print
The short-term oscillators are reflecting the intensifying positive momentum. Specifically, the MACD histogram has jumped above zero and its red signal line, while the RSI is flatlining above its 50-neutral threshold.
Should buying pressures persist, the recent peak of 0.7110 could be the initial resistance barrier. Piercing through this region, the bulls could target the 200-day SMA, currently at 0.7150. Violating this zone, the spotlight might turn to the June high of 0.7282 before 0.7458 appears on the radar.
On the flipside, if the pair reverses downwards, the 0.6946 hurdle may act as the first line of defence. Should that floor collapse, the recent low of 0.6868 might come under examination. Failing to halt there, the price could descend towards the May low of 0.6828 or lower to challenge the 0.6760 region.Overall, AUDUSD is showing an appetite for some recovery. Therefore, a break above 0.7282 is needed to alter its medium-term outlook to bullish.
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