AUDUSD has been in a range in a bullish trend given it has formed higher highs and higher lows. With that effect, market has the potential to bounce up from the support price of 0.6890. It should be noted that the trend on higher time frames is still bullish and another mark up can be expected from this support level.

The trendlines have enveloped the price action with the bottom trendline blanketing the price action and the descending trendline is on the verge of the breakout buy. This breakout buy if confirmed can seem to be bullish once broken out.

The retracement level of 75% is in confluence with the support level, therefore giving us a confirmation for the buy side.

EMA 50 is bearish. Given that the market is in a range, the bearish EMA 50 is ineffective as of now.

RSI is at 37, just few levels above the over sold region. Over sold region is formed below the 25 level which would form a bullish divergence in alignment to the bullish structure on the charts.

Delicate situation on AUDUSD

Feb 15 2023