Technical Analysis – AUDUSD suggests bearish correction on cards
May 9, 2023 9:27 am
AUDUSD is plunging from the 0.6795-0.6805 restrictive region, giving the green light for a bearish correction in the short-term, especially if there is a drop beneath the 20-period simple moving average (SMA). The RSI is dropping in the bullish area, while the MACD is extending its decline beneath its trigger line.
Should the pair stretch south, the 20-period SMA at 0.6740 could provide immediate support before the pair touches the 200-period SMA at 0.6690. If the selloff extends, the attention could then turn to the 50-period SMA at 0.6680.
On the flip side, the area around 0.6795-0.6805 may pause upside movemens as it did several times in April. If traders continue to buy the pair, the price could rise until the lows from February at 0.6855.
In the short-term picture, AUDUSD has been trading bullish in the past couple of weeks, but the current decline suggests a downside movement.
AUDUSD is plunging from the 0.6795-0.6805 restrictive region, giving the green light for a bearish correction in the short-term, especially if there is a drop beneath the 20-period simple moving average (SMA). The RSI is dropping in the bullish area, while the MACD is extending its decline beneath its trigger line.
Should the pair stretch south, the 20-period SMA at 0.6740 could provide immediate support before the pair touches the 200-period SMA at 0.6690. If the selloff extends, the attention could then turn to the 50-period SMA at 0.6680.
On the flip side, the area around 0.6795-0.6805 may pause upside movemens as it did several times in April. If traders continue to buy the pair, the price could rise until the lows from February at 0.6855.
In the short-term picture, AUDUSD has been trading bullish in the past couple of weeks, but the current decline suggests a downside movement.
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