AUDUSD is testing the descending trendline stretched from the 0.7031 high again following Friday’s bounce on the decade low of 0.6433, and expectations are for more upside to come, with the rising RSI and MACD backing any potential move higher.
Should the market close above the trendline, the bulls would aim for the 0.6670 barrier, which is slightly above the 38.2% Fibonacci of the 0.7031-0.6433 downleg. Clearing that obstacle, the way would open towards the 0.6710-0.6730 zone encapsulated by the 200-day simple moving average (SMA) and the 50% Fibonacci.
On the flip side, a downside reversal below the trendline may pause within the recently tested 0.6587-0.6565 region, while a break below the 20-day SMA may find some footing near 0.6500 before all eyes turn to Monday’s low of 0.6460.
In the medium-term picture, the pair could change its bearish profile to neutral only if it sustains gains above 0.6670.
In short, AUDUSD is likely to keep improving in the short-term if the descending trendline collapses. If that is the case, an increase above 0.6670 would also change the medium-term picture from negative to neutral.
AUDUSD is testing the descending trendline stretched from the 0.7031 high again following Friday’s bounce on the decade low of 0.6433, and expectations are for more upside to come, with the rising RSI and MACD backing any potential move higher.
Should the market close above the trendline, the bulls would aim for the 0.6670 barrier, which is slightly above the 38.2% Fibonacci of the 0.7031-0.6433 downleg. Clearing that obstacle, the way would open towards the 0.6710-0.6730 zone encapsulated by the 200-day simple moving average (SMA) and the 50% Fibonacci.
On the flip side, a downside reversal below the trendline may pause within the recently tested 0.6587-0.6565 region, while a break below the 20-day SMA may find some footing near 0.6500 before all eyes turn to Monday’s low of 0.6460.
In the medium-term picture, the pair could change its bearish profile to neutral only if it sustains gains above 0.6670.
In short, AUDUSD is likely to keep improving in the short-term if the descending trendline collapses. If that is the case, an increase above 0.6670 would also change the medium-term picture from negative to neutral.
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