AUDUSD was back above the 0.72 handle after hitting a fresh 6-year low of 0.7033 on Monday. The intra-day momentum has weakened slightly as the pair has come off highs of 0.7249. Further upward momentum is possible as RSI and the stochastics are still pointing up but is likely to be weak.
There is no change to the medium term outlook and prices remain in bearish territory below the Ichimoku cloud and the moving averages. Monday’s low of 0.7033 provides the nearest support – a break below this level would deepen the downside bias, which had weakened recently as prices were consolidating.
On the upside, resistance is likely to come from the August 11 high of 0.7439, just below the 50-day moving average. A break above this level would take prices into the cloud and possibly shift the trend into a range.