AUDUSD appears to be consolidating after reaching the 0.7000 mark, following a violent downwards spiral, which extended underneath the Ichimoku cloud and the 200-period simple moving average (SMA). The flattened Ichimoku lines reflect the stall in the pair, while the falling 50- and 100-period SMAs sponsor further negative price action.
The short-term oscillators mirror the recent increase in price sentiment. The MACD, some distance below zero, is improving above its red signal line, while the RSI is dipping above the line in the bearish region. Nonetheless, some caution is warranted from the dictating downward sloping SMAs and the negative demeanour of the Ichimoku cloud, which promote further losses.
If sellers resurface, initial support may occur at the red Tenkan-sen line at 0.7046 and the 0.7035 low beneath. A boost from the fresh bearish crossover of the 200-period SMA by the 100-period one could then challenge the two-month low of 0.7005. Should this fail to dismiss the decline, the pair may dive for the 0.6963 to 0.6372 support section ahead of the 0.6920 troughs.
Otherwise, early constrictions to upside moves may develop from the neighbouring 0.7086 high. Gaining ground, resistance may arise from the 0.7108 barrier and the blue Kijun-sen line at 0.7119, ahead of a limiting region of inside swing lows, from 0.7131 to 0.7149. Overcoming this, the price may then target the 50-period SMA currently at the 0.7177 high. Climbing above the cloud, the 0.7234 level, where the bearish crossover resides, could draw traders’ attention.
In brief, the short-term picture looks increasingly bearish below the SMAs and the cloud. A break below 0.7005 may reinforce this view.
AUDUSD appears to be consolidating after reaching the 0.7000 mark, following a violent downwards spiral, which extended underneath the Ichimoku cloud and the 200-period simple moving average (SMA). The flattened Ichimoku lines reflect the stall in the pair, while the falling 50- and 100-period SMAs sponsor further negative price action.
The short-term oscillators mirror the recent increase in price sentiment. The MACD, some distance below zero, is improving above its red signal line, while the RSI is dipping above the line in the bearish region. Nonetheless, some caution is warranted from the dictating downward sloping SMAs and the negative demeanour of the Ichimoku cloud, which promote further losses.
If sellers resurface, initial support may occur at the red Tenkan-sen line at 0.7046 and the 0.7035 low beneath. A boost from the fresh bearish crossover of the 200-period SMA by the 100-period one could then challenge the two-month low of 0.7005. Should this fail to dismiss the decline, the pair may dive for the 0.6963 to 0.6372 support section ahead of the 0.6920 troughs.
Otherwise, early constrictions to upside moves may develop from the neighbouring 0.7086 high. Gaining ground, resistance may arise from the 0.7108 barrier and the blue Kijun-sen line at 0.7119, ahead of a limiting region of inside swing lows, from 0.7131 to 0.7149. Overcoming this, the price may then target the 50-period SMA currently at the 0.7177 high. Climbing above the cloud, the 0.7234 level, where the bearish crossover resides, could draw traders’ attention.
In brief, the short-term picture looks increasingly bearish below the SMAs and the cloud. A break below 0.7005 may reinforce this view.
The post Technical Analysis – AUDUSD edges sideways after nosedive; downside risks intact first appeared on XM.
Related Posts: