AUDUSD has retreated from an 8-month high of 0.7484 it set on March 7 but has held on to the 0.74 handle. Prices remain firmly above the 200-day moving average and the Ichimoku cloud but the tenkan-sen and kijun-sen lines are moving sideways, suggesting the bullish bias has lost some steam from the losses of the past two days.
This is also evident from the RSI which has come down from overbought levels and is currently flat. But the MACD is still trending up, indicating that there is scope for further gains.
The nearest resistance is the key psychological level of 0.75 – a break above this level would strengthen the bullish bias. To the downside, the nearest support in sight is around 0.7380 – a previous resistance level. Failure to hold above this level could open the way for a decline towards the 200-day moving average and weaken the positive bias.
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