AUDUSD is currently challenging the supportive trend line pulled from the 0.6990 low, which has put the pair’s bullish endurance under the microscope. The price is also resting on the merged 50- and 100-day simple moving averages (SMAs), bordering the above mentioned line around the 0.7710 level, which are also reflecting a more neutral market mood for now. The 200-day SMA continues to defend the bigger positive structure.
The squeezed and flattening Bollinger bands are indicating that price volatility has dried up, which suggests a more profound move may soon unfold. The short-term oscillators are further reflecting subdued directional impetus. The MACD is weakening below its flattening red trigger line, which is not that far above the zero mark. The undecided RSI is mirroring price’s lack of directional thrust, while the dwindling in positive momentum being communicated by the stochastic oscillator appears feeble.
If bullish defences around the 0.7710 support zone remain steadfast, the pair may encounter preliminary upside constraints from the upper Bollinger band at 0.7842, and the neighbouring ceiling of the consolidation phase at 0.7848. If the price extends its acquired traction off the reinforced mark, resistance could then transpire from the 0.7966 barrier and the multi-year peak of 0.8006 overhead. Reinstating sound upside momentum with a break above the latter could inspire buyers to target the 0.8094 level, which happens to be the 261.8% Fibonacci extension of the down leg from 0.7413 to 0.6990.
Otherwise, from where things stand, sellers would need to drive the price below the enduring obstacles around 0.7710 and underneath the lower Bollinger band at 0.7690. This could result in the base of 0.7531-0.7600 and the 200-day SMA, lingering beneath, making attempts to prevent the price from snowballing. If these vital borders give way, the section of 0.7372-0.7461 could step into the spotlight.
Summarizing, AUDUSD’s two-and-a-half-month horizontal crawl has reached a tipping point, which could bolster or delay overall gains in the broader bullish outlook. A break below 0.7531 could impair the pair’s recent neutral-to-bullish demeanour.