AUDUSD Retains Neutral Bias For More Than 3 Months

AUDUSD has been moving within a horizontal trajectory over the last three months, remaining near the 20- and 40-day simple moving averages (SMAs). However, the 200-day SMA is still moving higher, approaching the current market price. The RSI, around the 50 neutral levels, is heading south, while the MACD oscillator is failing to strengthen its movement, holding near the zero levels in the short term.

Should prices decline further, an immediate level could be found around 0.7570, an area that has provided crucial support. Then marginally below that, the pair could meet the 200-day SMA, which stands near the 0.7533 barriers, before the focus shifts to the 0.7464 support. Even lower, the 23.6% Fibonacci retracement level of the up leg from 0.5505 to 0.8006 at 0.7415 could be a key line, before the bears visit the 38.2% Fibonacci at 0.7050.

If the market manages to pick up speed, the upper boundary of the channel at 0.7886 could offer nearby resistance ahead of the more-than-three-year high of 0.8006. In this case, prices could climb towards the 0.8130 resistance, being high from January 2018.

Overall, in the medium-term, AUDUSD is moving sideways but the broader outlook is still bullish, remaining above the 200-day SMA.

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