AUDUSD rises in ascending channel, bullish

AUDUSD is moving within the Ichimoku cloud and the short-term simple moving averages (SMAs), while in the bigger picture the price has been in an ascending channel since December 2021. The MACD oscillator is flattening around its trigger and zero lines, unable to improve the bullish bias. However, the RSI indicator is sloping upwards in the positive region.

If the price gains more ground, immediate resistance could come from the 0.7310 barrier and the 0.7367 resistance. Above these obstacles, the 200-day SMA at 0.7410 could attract traders’ attention ahead of the high of 0.7560, registered in October 2020.

Alternatively, a drop below the Ichimoku cloud could meet the 0.7130 support, which holds near the return line of the channel before hitting the 0.7100 psychological number. Steeper decreases may send the sellers until the 13-month low of 0.6990.All in all, AUDUSD is in a positive bias and only a dive below the upward sloping channel and more importantly below the 13-month low will endorse the long-term bearish view again.

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).

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