AUDUSD plummets but 200-day SMA curbs decline

AUDUSD had been staging an impressive rebound, trading within an upward sloping channel since mid-October. Nevertheless, the pair experienced a moderate pullback in the short term, with the price escaping its pattern to the downside to find strong support at the 200-day simple moving average (SMA).

The momentum indicators currently suggest that bearish forces have gained total control. Specifically, the MACD histogram is softening below both zero and its red signal line, while the RSI is pointing upwards but remains well beneath its 50-neutral mark.

Should selling pressures intensify further, the pair could decline to retest the 200-day SMA, currently at 0.6794. Sliding beneath that zone, the bears might aim for the January low of 0.6687 before the December bottom of 0.6628 comes under examination. Even lower, further retreats could come to a halt at the 0.6546 barrier.

On the flipside, bullish actions might encounter initial resistance at the 0.6920 hurdle. Conquering this barricade, the pair could ascend towards 0.7030 or higher to challenge the recent trend rejection point of 0.7157. Should that obstacle fail, the June high of 0.7282 may appear on the radar.

Overall, AUDUSD seems to be experiencing some weakness after its medium-term bullish pattern broke to the downside. However, there is room for recovery in the case that the pair bounces off the 200-day SMA.

About the author

Stefanos Oikonomidis

Stefanos bergabung XM sebagai Analis Junior pada September 2021. Ia melakukan riset pasar harian pada mata uang, komoditas dan pasar ekuitas, dari perspektif fundamental dan teknis. Sebelum bergabung di XM, ia memperoleh wawasan berharga dengan bekerja sebagai Pekerja Magang Risiko Kredit di bank besar Yunani.

Stefanos meraih gelar Master di bidang Finansial dari Warwick Business School dan gelar Sarjana di bidang Akuntansi dan Finansial dari Athens University of Economics and Business. Ia percaya bahwa untuk menjadi sukses di industri, Anda harus bisa mengidentifikasi kekuatan pendorong di balik setiap pergerakan pasar, dan dibahas secara jelas dengan para pembaca.