AUDUSD Underperforms Below 200-Day SMA and 0.7200
The AUDUSD has underperformed over the past few sessions after finding a significant hurdle to break above the 200-day simple moving average (SMA) and the round number of 0.7200.
However, the 20-day and 40-day SMA are showing a bullish crossover, while the MACD is still holding in the positive region. But the RSI indicator is losing momentum in the bullish zone, suggesting that the next moves could be on the downside.
If the price action remains above the short-term SMAs, there is a chance to retest the 200-day SMA at 0.7250, slightly below the resistance at 0.7280. Removal of this key level would lead to further gains towards the inner low of 0.7340 on April 18th. Going back above, prices would retest the 0.7457-0.7490 barrier and then from there touch the 10-month high of 0.7660.
If the short-term SMAs fail to halt the decline, then focus would shift down to 0.7050. Greater selling interest could pave the way for near 2-year lows of 0.6827 which, if breached, would increase downside pressure and lead to a new low near 0.6770 before a dive lower. 0.6570, taken from the April 2020 domestic high.
Overall, the AUDUSD has been negative since peaking at 0.7280. Near-term weakness is likely to persist as long as price action takes place below the 200-day SMA. However, a rise beyond the latter may increase speculation for a bullish bias.