Technical Analysis – AUDUSD battles with 200-day SMA
- AUDUSD may pause downside move
- Stochastic and RSI still show negative signs
AUDUSD has been battling with the 200-day simple moving average (SMA) near 0.6630 over the last couple of days, and selling interest has started after its pullback off the 20-month high of 0.6940.
According to technical oscillators, the stochastic is trying to cross beneath the 20 level, and the RSI is sloping slightly south below the neutral threshold of 50.
If the price successfully falls below the 200-day SMA and the significant support of 0.6620, it may challenge the long-term ascending trend line near 0.6590, ahead of the 0.6560 barricade. A decline beneath these lines could open the way for deeper negative movements.
In the positive scenario, if the 0.6620 bar acts as a turning point, then the bulls could try to overcome the 0.6655 resistance and meet the bearish cross within the 20- and 50-day SMAs at 0.6750.
To sum up, AUDUSD has been bearish over the last month, but the bigger picture remains bullish as long as it stands beyond the rising trend line.
Related Assets
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.
