Technical Analysis – AUDUSD extends sideways movement
AUDUSD trades back and forth within its range
The ascending 50-day SMA acts as a strong floor
Oscillators remain tilted to the bullish side
AUDUSD has been trading sideways for more than a month now as the price has been unable to jump above the five-month high of 0.6713. However, the pair’s downside also seems to be capped by the upward sloping 50-day simple moving average (SMA).
If buying pressures persist, the price may initially test the five-month high of 0.6713, which is the upper boundary of its short-term range. A violation of that threshold could pave the way for the December 2023 high of 0.6870. Failing to halt there, the pair may advance towards the double top region of 0.6898, registered last summer.
On the flipside, should the pair reverse lower, immediate support could be found at the April-May resistance of 0.6643. In case of a downside violation, the bears may attack the recent support of 0.6590, which overlaps with the 50-day SMA. Further declines could then come to a halt at 0.6558, the lower limit of the pair’s range.
In brief, AUDUSD appears to be in a neutral phase as the bulls’ attempts for a fresh higher high have not yet come into fruition. Therefore, a clear break above or below the short-term range is needed for the pair to adopt a clear directional impetus.
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