Technical Analysis – AUDUSD continues to trade in sideways manner
May 16, 2023 3:25 pm
AUDUSD has been in a sliding mode this week, after hitting resistance near its 50-period exponential moving average (EMA). That said, in the bigger picture, the pair has been trading sideways since February 24, with most of the price action being contained between the 0.6625 and 0.6795 barriers. Therefore, the short-term outlook for now remains neutral.
Both the short-term oscillators are detecting negative momentum. The RSI is lying below 50, but it has turned up today, while the MACD, although below zero, is still running above its trigger line. This confirms the notion of waiting for stronger momentum and price action signals over a potential sustained directional move.
The bears could claim full control upon a dip below the lower bound of the range at 0.6625, which could initially aim for the 0.6575 barrier. That barrier offered strong support back in March and more recently on April 28. That said, a break below that zone could see scope for larger bearish implications, perhaps paving the way towards the low of November 10 at 0.6385.
On the upside, a break above 0.6795 may be needed for the picture to be considered bullish. Such a break could confirm the upside exit out of the aforementioned range and may set the stage for advances towards the 0.6920 territory that offered resistance on February 20. If the bulls are not willing to stop there, then they may extend their march towards the peak of February 14 at around 0.7030.
To summarize, AUDUSD has been largely contained within a sideways range since late February, between the 0.6625 and 0.6795 barriers. Therefore, a clear escape in either direction may be needed for the next trending phase to start being examined.
AUDUSD has been in a sliding mode this week, after hitting resistance near its 50-period exponential moving average (EMA). That said, in the bigger picture, the pair has been trading sideways since February 24, with most of the price action being contained between the 0.6625 and 0.6795 barriers. Therefore, the short-term outlook for now remains neutral.
Both the short-term oscillators are detecting negative momentum. The RSI is lying below 50, but it has turned up today, while the MACD, although below zero, is still running above its trigger line. This confirms the notion of waiting for stronger momentum and price action signals over a potential sustained directional move.
The bears could claim full control upon a dip below the lower bound of the range at 0.6625, which could initially aim for the 0.6575 barrier. That barrier offered strong support back in March and more recently on April 28. That said, a break below that zone could see scope for larger bearish implications, perhaps paving the way towards the low of November 10 at 0.6385.
On the upside, a break above 0.6795 may be needed for the picture to be considered bullish. Such a break could confirm the upside exit out of the aforementioned range and may set the stage for advances towards the 0.6920 territory that offered resistance on February 20. If the bulls are not willing to stop there, then they may extend their march towards the peak of February 14 at around 0.7030.
To summarize, AUDUSD has been largely contained within a sideways range since late February, between the 0.6625 and 0.6795 barriers. Therefore, a clear escape in either direction may be needed for the next trending phase to start being examined.
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