Technical Analysis – AUDUSD consolidates, limited between 50- and 100-day SMAs
October 8, 2020 8:25 am
AUDUSD is currently creeping sideways, constricted between the 50- and 100-day simple moving averages (SMAs), after the pullback from the near 25-month peak of 0.7413. The easing negative tones of the Ichimoku lines are aiding the horizontal price action, while the relatively bullish bearing of the 50-and 100-day SMAs defend a neutral-to-bullish structure.
Nonetheless, the short-term oscillators reflect mixed signals in directional momentum. The MACD, in the negative region, is strengthening above its red trigger line towards the zero mark, while the rising RSI is tackling its neutral threshold. However, the stochastic oscillator maintains a strong negative bearing, promoting weakness in the pair.
In a positive scenario, tough resistance may originate from the 50-day SMA at the 0.7209 barrier. Overrunning this, and the nearby upper band of the Ichimoku cloud, the pair may hit the 0.7344 high before challenging the multi-month peak of 0.7413. If additional gains begin to unfold, the price could encounter the 0.7452 to 0.7483 section of highs from July and August 2018. Should buyers sustain their hike, they could then aim for the 0.7623 objective ahead of the 0.7676 high.
Otherwise, slipping under the cloud’s lower band at 0.7117, early support may arise from the 100-day SMA at 0.7065, prior to the key 0.7005 trough. Sinking beneath this barrier, the price may falter at the zone from the 0.6963 level until the 0.6921 low, the latter being the 23.6% Fibonacci retracement of the up leg from 0.5506 to 0.7413. Steeper declines may then face an enhanced obstructing zone from 0.6806 to 0.6749, that also contains the 200-day SMA. Should this buffer zone fail to dismiss the decline, the 38.2% Fibo of 0.6685 may provide some protection to the downside.
Summarizing, AUDUSD maintains a neutral-to-bullish picture above the 100-day SMA and the 0.7005 mark.
AUDUSD is currently creeping sideways, constricted between the 50- and 100-day simple moving averages (SMAs), after the pullback from the near 25-month peak of 0.7413. The easing negative tones of the Ichimoku lines are aiding the horizontal price action, while the relatively bullish bearing of the 50-and 100-day SMAs defend a neutral-to-bullish structure.
Nonetheless, the short-term oscillators reflect mixed signals in directional momentum. The MACD, in the negative region, is strengthening above its red trigger line towards the zero mark, while the rising RSI is tackling its neutral threshold. However, the stochastic oscillator maintains a strong negative bearing, promoting weakness in the pair.
In a positive scenario, tough resistance may originate from the 50-day SMA at the 0.7209 barrier. Overrunning this, and the nearby upper band of the Ichimoku cloud, the pair may hit the 0.7344 high before challenging the multi-month peak of 0.7413. If additional gains begin to unfold, the price could encounter the 0.7452 to 0.7483 section of highs from July and August 2018. Should buyers sustain their hike, they could then aim for the 0.7623 objective ahead of the 0.7676 high.
Otherwise, slipping under the cloud’s lower band at 0.7117, early support may arise from the 100-day SMA at 0.7065, prior to the key 0.7005 trough. Sinking beneath this barrier, the price may falter at the zone from the 0.6963 level until the 0.6921 low, the latter being the 23.6% Fibonacci retracement of the up leg from 0.5506 to 0.7413. Steeper declines may then face an enhanced obstructing zone from 0.6806 to 0.6749, that also contains the 200-day SMA. Should this buffer zone fail to dismiss the decline, the 38.2% Fibo of 0.6685 may provide some protection to the downside.
Summarizing, AUDUSD maintains a neutral-to-bullish picture above the 100-day SMA and the 0.7005 mark.
The post Technical Analysis – AUDUSD consolidates, limited between 50- and 100-day SMAs first appeared on XM.
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