· AUDUSD jumps above trading range
· MACD indicates more gains; but RSI heads south
· 20- and 50-day SMAs post bullish cross
AUDUSD posted a strong bullish day on Wednesday, showing some more upside pressure today, towards a fresh four-month high, exiting from the consolidation area of 0.6390-0.6635. A rally higher until the next resistance level of 0.6730 could endorse a bullish retracement in the market.
Technically, the 20- and the 50-day simple moving averages (SMAs) posted a bullish crossover suggesting more gains, while the oscillators are mixed. The MACD is holding above its trigger and zero lines, while the RSI is pointing south above the neutral threshold of 50, indicating a potential downside correction.
In the case of steeper increases and a rally towards the 0.6730 barrier, this could endorse an upside recovery, while even higher a move until the 0.6870 high, registered on December 28 could change the neutral-to-bullish outlook.
On the flip side, a drop back until the 0.6635-0.6665 support region may switch the bias to sideways again. Below that, traders need to watch the 0.6555 barriers ahead of the SMAs at 0.6540 and 0.6520 before tumbling to the 0.6465 mark.
In a nutshell, AUDUSD needs more boost to officially confirm a bullish tendency as the recent spike is not enough for changing the outlook.