AUDUSD Slumps To 7-Week Low But Could Be Bottoming Out

AUDUSD slid to a 7-week low of 0.7582 on Wednesday and has since been struggling to reclaim the 0.76 level. The momentum indicators are displaying mixed messages. The RSI has flatlined below the 50 levels, suggesting the selling pressure is easing. But the stochastics are still pointing down; although being so deep in negative territory, it may only be a matter of time before they reverse higher.

The pair is attempting to make a positive turn today and should the short-term picture improve meaningfully, the price may soon surpass the 38.2% Fibonacci retracement of the November 2020-February 2021 uptrend at 0.7618. Such a move should be enough to generate enough positive momentum for the pair to make a dash for the key 0.77 handles.

Higher up, there could be a much bigger test for the bulls at the intersection zone of the 20- and 50-day moving averages (MA) around 0.7730.

A climb above the MAs would help switch the near-term bias to neutral, whereas for the pair to restore its bullish momentum, it would need to stretch its rebound above the 23.6% Fibonacci of 0.7767 and towards the resistance area around 0.7840 that prevented advances several times over the last month.

However, if the bears stand their ground as the 20-day MA completes its bearish cross with the 50-day MA, AUDUSD could easily beat the February trough of 0.7563 and head towards the 50% Fibonacci of 0.7498. A break below the 50% Fibonacci would pave the way for the 200-day MA at 0.7370, shifting the medium-term outlook to bearish.

To sum up, AUDUSD is in danger of seeing its longer-term bullish structure being eroded. However, the possibility of a near-term rebound shouldn’t be ruled out. Yet, only a rise above February’s 3-year top of 0.8006 would safeguard the longer-run uptrend, which is some distance away from the current price action.

0 views0 comments



Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognize that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. Smart Analysis Pvt takes not responsibility for loss incurred as a result of our trading signals. By signing up as a member you acknowledge that we are not providing financial advice and that you are making a the decision to copy our trades on your own account. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our signals or advice on forex related products on this website.


Credit  & Debit Card

  • Black Facebook Icon
  • Black Instagram Icon
  • Black YouTube Icon

© 2023 by Personal Life Coach. Proudly created with