AUDUSD has been lower over the past week as it has failed to outperform the short-term simple moving averages (SMAs). The price is currently diving below the round number 0.6900, and it seems ready to retest the nearly two-year low of 0.6827. Even lower, the market may find strong support near the 0.6770 level, taken from the low in June 2020. Breaking these hurdles, traders may take the pair until the April 2020 internal swing at 0.6570, confirming the long-term bearish outlook .
Turning to the technical indicators, the MACD oscillator moves lower below its trigger and zero lines, while the RSI indicator loses some momentum in the negative region.
If the market corrects higher, the bullish action may pause initially near 20- and 40-day SMAs around 0.7060 before attention shifts to the 200-day SMA at 0.7234. Accumulation above the latter and, more importantly above the 0.7280 is likely to generate fresh buying pressure, with the price moving next to the 0.7340 resistance and then to 0.7457.
In short, AUDUSD is bearish in the short and medium term and only a climb beyond the 200-day SMA can change this outlook to bullish.