FxNews—The AUD/USD pair trades in a bear market, below the 100-period simple moving average and the descending trendline. However, the downtrend eased after the prices fell to $0.634 on November 15. Since then, the currency pair has been trading sideways in a narrow range area.
As of this writing, AUD/USD trades at approximately $0.653, testing the 100-SMA, backed by the descending trendline. This critical resistance level has held the price to rise higher.
AUD/USD Technical Analysis
As for the technical indicators, the Stochastic Oscillator depicts 85 in the description, meaning the Australian dollar is overpriced in the short term. But, the Awesome Oscillator and RSI 14 are on the rise, hinting at the bull market strengthens.
Overall, the technical indicators suggest the primary trend is bearish; the market is overbought amid weak bullish signs.
AUDUSD Consolidates Near Critical Resistance at $0.653
The immediate support rests at $0.648. From a technical perspective, the downtrend will likely be triggered again if AUD/USD falls below this mark. In this scenario, the next bearish target could be retesting the critical support of $0.641.
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On the other hand, the current consolidation phase could extend higher if bulls pull AUD/USD above the immediate resistance at $0.657. If this scenario unfolds, the next bullish target could be $0.664, followed by $0.669.