AUD/USD stretches below 23.6% Fibonacci; next level 0.70.
AUD/USD stretched slightly to the downside today, falling back below the 23.6% Fibonacci retracement level of the down leg from 0.8135 to 0.6746, around 0.7070 and the Ichimoku cloud.
The technical picture remains to the upside as the MACD is trying to post a bullish crossover with the trigger line, while the stochastic is approaching the overbought zone. Also, currently, the price is trading below the 20- and 40-simple moving averages (SMAs) in the daily timeframe and the red Tenkan-sen and the blue Kijun-sen lines are sloping down, suggesting negative momentum.
Should bearish action continue below the 0.7000 level, support could be found around the 0.6825 level, taken from low on January 2016. A successful break lower could then bring the ten-year low of 0.6746 back into view.
In case of a recovery above the Ichimoku cloud and the 20- and 40-SMA, the 0.7200 level could provide nearby resistance. If the bulls push the pair even higher, the 38.2% Fibonacci of 0.7275 and the 0.7295 resistance could come in focus.
Overall, in the long-term, AUD/USD stands in a narrow range within the 0.7000-0.7390 area over the last seven months.
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