Forex

AUDUSD Retreats after Fflirting with 7-Week Peak

AUDUSD penetrated to the downside the short-term rising trend line in the previous days, but advanced to meet it again before the bearish movement today. A trading range has been created after the touch again on the seven-week high of 0.6570 with lower boundary the 0.6378 barrier.

The price is flirting with the 20-period simple moving average (SMA) ahead of the flat 40-period SMA, while the technical indicators are confirming the recent negative bias with the RSI approaching the 50 level and the stochastic edging south.

The next level to watch is the Ichimoku cloud around 0.6450 before challenging the 0.6378 support level. Lower, the 23.6% Fibonacci retracement level of the upward wave from 0.5506 to 0.6570 at 0.6315 could attract attention. Moving lower the 0.6215 and 0.6250 area could halt downside movement before the market reaches the 38.2% Fibonacci region.

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Alternatively, AUDUSD could rise towards the 0.6570 resistance ahead of the peak on March 9 at 0.6685. Surpassing this line, the price could rest at 0.6746, achieved on February 12.

To sum up, AUDUSD has been in a consolidation area of 0.6378-0.6570 over the last two weeks flirting with flat short-term SMAs.

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