- AUDUSD was recovering from its lowest level since November
- But is on the retreat again as 200-day SMA repels advance
- Momentum indicators are tilted to the downside
AUDUSD had been in a steady decline after peaking at 0.6870 in December, violating both its 50- and 200-day simple moving averages (SMAs). Although the pair managed to find its feet and rotate back above its descending trendline, it has been losing ground again following its repeated rejection at the 200-day SMA.
Should the pair extend its slide, the February support of 0.6467 could act as the first line of defence. A break below that level might pave the way for the 2024 bottom of 0.6441. Sliding beneath that floor, the pair may descend towards the August low of 0.6363.
On the flipside, bullish actions could propel the price towards 0.6525, a region that provided both support and resistance in recent months. Further advances could then cease at the recent peak of 0.6593 ahead of the January resistance of 0.6623. Even higher, the pair may challenge the 0.6689 hurdle.
In brief, AUDUSD has begun a new round of weakness following its persistent inability to claim the 200-day SMA.
