Technical Analysis – AUDUSD tries to revisit 1-year high

Melina Deltas, XM Investment Research Desk

AUDUSD has been slowly ascending after the rebound on the 0.6800 support, jumping above the short-term 20-day simple moving average (SMA). The price is approaching again the almost one-year peak of 0.7067, searching for new upside adventures. Also, the stochastic oscillator is confirming this view as it is reversing north and has yet to reach overbought levels.

In the positive scenario, a jump above the 0.7030 level could find immediate resistance at the 0.7067 barrier before moving towards the 0.7205 – 0.7295 zone.

Alternatively, a decline beneath the 20- and 40-day SMAs could hit the 0.6800 psychological mark, which stands near the upper surface of the Ichimoku cloud. Breaching these levels, the price could revisit the 23.6% Fibonacci retracement level of the up leg from 0.5506 to 0.7067 at 0.6685 and near the 200-day SMA. The 38.2% Fibo of 0.6467 might be the next target.

Overall, AUDUSD looks to be bullish in the short- and medium-term pictures. Any close above 0.7067 could trigger fresh positive actions, improving the longer timeframe as well.