AUDUSD had been trending lower within a downward sloping channel after peaking at 0.7157 in early February. Although the pair managed to escape this bearish pattern to the upside, it has been stuck in a sideways move as initially the 200- day simple moving average (SMA) and later the 50-day SMA rejected further advances.
The momentum indicators are currently endorsing a bearish near-term bias. Specifically, the RSI dropped below its 50-neutral mark, while the stochastic oscillator is falling after posting a bearish cross. Furthermore, the descending 50-day SMA is closing the gap with the 200-day SMA, where a potential death cross could induce negative pressures.
Should the bears manage to push the price lower, initial support could be found at 0.6652. If that barricade fails, the bears might aim for 0.6590 before the 2023 bottom of 0.6563 gets tested. Even lower, the 0.6385 hurdle could provide downside protection.
Alternatively, if the price edges higher, the resistance region of 0.6750 might act as the first obstacle for buyers to clear. Surpassing that zone, the pair could challenge the recent rejection zone of 0.6792. A break above that territory may turn the spotlight to 0.6920.
Overall, AUDUSD seems to be in a neutral phase, but the technical indicators are dangerously pointing towards the bearish side. For that negative sentiment to change, the price needs to jump above both its 50- and 200-day SMAs.
