AUD/USD gains some ground; builds a base around 23.6% Fibonacci level.
AUD/USD is trading higher following the rebound on the 0.7715 significant support level. However, the bullish movement paused at the 40-day simple moving average near the 0.7900 psychological level during yesterday’s session.
Looking at the momentum indicators, the RSI indicator is moving slightly above its neutral threshold of 50 and is sloping to the upside, suggesting that the market could keep moving higher in the near term. The MACD oscillator also supports this view as it is in the negative territory but is ready to surpass the zero line.
A move to the upside could see immediate resistance at the 40-day SMA at 0.7900 but should the market increase positive momentum above this area, the 0.7990 could be the next level of focus. A stronger barrier, though, could be found at the 0.8100 handle, which if broken would increase the chances for further gains.
In the wake of negative pressures, the market could meet support at the 23.6% Fibonacci of 0.7826 of the up-leg from 0.6820 to 0.8135, which holds near the 20-day SMA. A successful close below this level could see a retest of the previous low of 0.7715, while in case of steeper declines, the pair could breach this trough, diving to the 38.2% Fibonacci mark at 0.7626.
Turning to the medium-term picture, the market seems to be in bullish mode given that the price has been trading in an ascending trend since January 2016 and tested the diagonal line several times in the past.
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