business forward

AUDUSD’s Progress Curbed by Ichimoku Cloud and MAs - Action Forex

AUDUSD is struggling to push further north of the 0.7300 mark as the 50- and 100-day simple moving averages (SMAs) along with the Ichimoku cloud are directing the pair lower. The overall bearish demeanour of the SMAs is defending the gradual drop in the pair.

The Ichimoku lines are not indicating a dominant directional drive in the pair, while the short-term oscillators are suggesting that negative momentum is growing in power. The MACD has nudged below its red trigger and zero threshold, while the RSI is falling in the bearish region. The stochastic oscillators’ negative charge is promoting additional downward moves in the pair.

If the price continues to glide lower, immediate downside hindrance could occur at the flattening blue Kijun-sen line at 0.7134 ahead of the 0.7082 barrier. Sustaining the bearish trajectory, sellers may then confront the critical 0.6963-0.7020 support foundation, which has safeguarded the broader positive structure since October 2020. From here, if the pair steers south of this boundary, it could target the 0.6900 mark, triggering considerable worries about further deterioration in the pair.

To the upside, buyers are promptly challenged with the cloud, the adjacent red Tenkan-sen line at 0.7203 and the 50-day SMA at 0.7220. Ticking slightly higher, the congested obstacles being the cloud’s upper band at 0.7203 and the 100-day SMA at 0.7290 may cause some difficulty for bullish momentum to gain ignition. However, if buyers are triumphant, they could propel the price towards the 0.7370 high before aiming for the 200-day SMA at 0.7426.

Summarizing, AUDUSD’s positive forces are still losing power and the pair is adopting a neutral-to-bearish bias. That said, for bullish momentum to strengthen, the recent price bounce within the 06963-0.7020 base would need to push beyond the cloud and the 100-day SMA at 0.7290.

XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.