AUDUSD stays directed towards 2.5-month-old support lineAlthough AUDUSD keeps Monday’s recovery moves around 0.7700, the pair bulls have a bumpy road ahead. That said, a 100-day SMA level of 0.7725 and a monthly falling trend line near 0.7760 probes the short-term recovery moves amid sluggish MACD. It should also be noted that an absence of directional signals from the RSI also challenges the pair’s corrective bounce inside a symmetrical triangle formation between 0.7760 and 0.7660.
While the absence of bullish signals isn’t enough to back bears, the market’s anxiety ahead of tomorrow’s US Federal Reserve (Fed) meeting adds to the sellers’ favor. However, a clear downside below an ascending support line from April 01, near 0.7660, becomes necessary for the AUDUSD bears to retake controls. Following that, the monthly low near 0.7645 and the mid-April bottom surrounding 0.7585 should gain the market’s attention.
