- The daily RSI remains in positive territory but suffered a strong impact.
- On the hourly chart, the RSI is oversold.
- The pair could consolidate in the short term.
The AUD/USD pair is currently trading at 0.6583, suggesting a sharp decline. Regardless of the immediate selling pressure, the overall technical picture indicates that buyers maintain significant control over the pair. The hourly chart shows strengthening short-term bearish momentum, but selling traction could lose strength after indicators enter oversold territory.
On the daily chart, the Relative Strength Index (RSI), despite a slight decline, remains in positive territory. The green Moving Average Convergence Divergence (MACD) bars show stable positive momentum, further confirming the dominance of buyers on broader timeframes.
AUD/USD Daily Chart
While the daily chart shows signs of buying momentum, the latest RSI readings on the hourly chart present an opposite picture, with values ​​well below 30. This implies that AUD/USD is in oversold territory, which suggests overwhelming dominance of sellers in the market. However, the MACD is showing decreasing red bars, indicating a decline in short-term bearish momentum as sellers could be running out of gas.
AUD/USD hourly chart
Despite the bearish momentum on the hourly chart, the overall picture remains bullish as the pair continues above the 100- and 200-day SMAs. At the moment, buyers are fighting to defend the 20-day average, which, if lost, will tilt the outlook in favor of the bears in the short term.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
