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Technical Analysis – AUDUSD struggles to hold above 0.73 on weakened bullish bias

AUDUSD reversed earlier positive intra-day momentum on Wednesday, coming close to dropping below 0.73, having climbed above the level on yesterday’s 1.3% gain. RSI and the stochastics are still positive in the daily charts therefore further gains are possible in the near term.

In the medium-term picture, prices would need to break above the October 12 high of 0.7381 if the pair is to sustain its current uptrend, which is being supported by higher lows since September. It is too early to tell if this is a trend reversal or a temporary correction from its long-term downtrend but a break above the 200-day moving average would be an indication of the former.

To the downside, the 50-day moving average is the nearest support at 0.7169. A break below this level would take prices below the Ichimoku cloud and into bearish territory.

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