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AUDUSD finds support at 0.6640
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Stochastic and MACD keep downside momentum
AUDUSD held in losses for the second week in a row, dropping beneath the 20- and 50-day simple moving averages (SMAs) and near key support area of 0.6640 before turning neutral.
The stochastic oscillator in the daily chart continues to lose ground in the oversold region, while the MACD is moving well below its trigger line, reducing chances for a meaningful recovery.
However, should the price close comfortably above the short-term SMAs, traders could add more value to the pair, pushing the market up to the 0.6770 resistance level. Further increases could drive the markets towards the previous peak of 0.6820.
In the negative scenario, where the 0.6640 barrier halts downside moves, the market could retest the 200-day SMA at 0.6615. If this proves easy to overcome this time, the decline may next pause somewhere between the 0.6560 support and the uptrend line.
In brief, AUDUSD is in a bearish mode in the very short-term timeframe and bullish in the bigger outlook.
