Forex

AUDUSD holds a bullish bias near the 20-day SMA

AUDUSD has gained little the last couple of sessions, managing to hold above the 20-day simple moving average (SMA) and re-enter the 0.6700 area, with the technical indicators feeding prospects for a possible positive short-term trading. The RSI holds above the 50 level, while the MACD continues to move in bullish territory but below its trigger line.  Also, in Ichimoku indicators, the red Tenkan-sen line keeps standing above the blue Kijun-sen line.

A failure to move higher than the 0.6850 resistance could be a challenge ahead of the 200-day SMA near 0.6900. Above that, the 0.6920 resistance could next come in focus before the bulls shift the long-term outlook to positive as well, testing the 0.7010 peak.

Alternatively, if the 20-day SMA proves easy to get through, the spotlight will turn to the 0.6640 support ahead of the upper boundary of the Ichimoku cloud at 0.6586. Any moves lower could meet the 0.6520 barrier, which overlaps with the 50-day SMA before traders hit the 0.6270 bottom.

In the medium-term picture, AUDUSD has turned bullish after violating the downtrend starting from the 0.7660 peak. Should the market continue the upward pattern, the outlook may turn brighter. A run above the 200-day SMA would turn the outlook strongly bullish.

About the author

Melina Deltas

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).