AUDUSD rebounded off the short-term ascending trend line, currently flirting with the 200-day simple moving average (SMA) around the 0.7300 psychological mark.
As regards the technical indicators, the RSI is strengthening its bullish move above the neutral threshold of 50, while the stochastic is extending its upside move higher, after the bullish crossover within its %K and %D lines.
Immediate resistance could come from the 0.7365 barrier before the focus turns to the 0.7440 level. If buying interest persists, the price could rally towards the 0.7555 hurdle, shifting the outlook to strongly positive.
In the negative scenario, a return beneath the 200-day SMA could drive the pair until the supportive 20-day SMA at 0.7300. Stepping lower, the near-term uptrend line, which overlaps with the 40-day SMA, may halt the bearish actions at 0.7195. Below that, a close below the 0.7100 and 0.7050 levels would switch the bias to neutral.
In brief, AUDUSD has been in an ascending move since January 28. A successful break above the 200-day SMA will further endorse the current bullish outlook.
