AUD/USD stands below 23.6% Fibonacci level; ascending move in medium-term holds.
AUD/USD has reversed back down again after finding resistance at the 0.7990 resistance level achieved last week. Also, the price slipped below the 23.6% Fibonacci retracement level at 0.7826 of the up-leg with the low of 0.6820 and the high of 0.8100 in the medium-term timeframe during yesterday’s session.
The downside pressure seems to be stronger, while the technical indicators are endorsing the bearish scenario. From the technical point of view, in the short-term timeframe, the stochastic oscillator is approaching the oversold territory, while the MACD oscillator is moving slightly lower below the zero line. Additionally, the 20-day simple moving average is ready to post a bearish crossover with the 40-day SMA, indicating bearish pressure.
If the price remains below the 23.6% Fibonacci mark could, it could extend the losses towards the 0.7730 – 0.7755 support level. If the aforementioned area breached could open the way for the 38.2% Fibonacci level near 0.7635.
In the event of an upside movement, the next resistance to have in mind is the 0.7990 barrier. It is worth mentioning that AUD/USD has been developing an ascending move since January 2016 and tested several times the diagonal line without slipping below it.
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