Technical Analysis – AUDUSD underperforms below the 200-day SMA and 0.7200
However, the 20- and 40-day SMAs are in the process of posting a bullish crossover, while the MACD is still standing in the positive region. But the RSI indicator is losing momentum in the bullish area, suggesting that the next movements may be to the downside.
If price action remains above the short-term SMAs, there is scope to test the 200-day SMA at 0.7250 again, marginally below the 0.7280 resistance. Clearing this key level would see additional gains towards the 0.7340 inside swing low on April 18. Rising above, it would see prices re-test the 0.7457-0.7490 barrier and then from there would touch the ten-month high of 0.7660.
If the short-term SMAs fail to halt the decline, then the focus would shift to the downside towards 0.7050. More selling interest could open the way for the almost two-year low of 0.6827 which, if breached, would increase downside pressure and bring about a new low near 0.6770 ahead of a dive towards 0.6570, taken from the inside swing high of April 2020.
Overall, AUDUSD has been negative since peaking at 0.7280. Near-term weakness is expected to remain as long as price action take place below the 200-day SMA. Though, a climb beyond the latter may increase the speculation for a bullish bias.
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
