AUD/USD has been trading higher since yesterday, after it hit support at 0.7725. Overall, the pair continues to print higher highs and higher lows above the uptrend line drawn from the low of Nov. 13, and thus, we would consider the near-term outlook to be positive.
The latest rebound may encourage the bulls to challenge the 0.7820 territory soon, the break of which will confirm a forthcoming higher high and may pave the way towards the 0.7915 territory, which is defined as a resistance by the high of Mar. 14, 2018. If that zone is not able to stop the advance, then a break higher may see scope for extensions towards the psychological round figure of 0.8000, which is fractionally above the peak of Feb. 16, 2018.
Shifting attention to our short-term oscillators we see that the RSI rebounded from near its 50 line, while the MACD, although below its trigger line, lies within its positive territory and shows signs that it could turn up as well. Both indicators suggest that the pair may have started gaining upside speed again, which supports the notion for further advances, at least in the short run.
In order to start examining whether the bears have stolen the bulls’ swords, we would like to see a decisive break below 0.7555. The rate would already be below the aforementioned uptrend line and may encourage declines towards the low of Dec. 21, at 0.7460. Another break, below 0.7460, may set the stage for extensions towards the 0.7370 territory, marked by the low of Dec. 7.