AUD/USD traded somewhat higher during the European morning Monday after it hit support at 0.7315 (S1). In my opinion, given that the rate is trading above the downtrend line taken from the peak of the 21st of April, I would consider the short-term outlook to have shifted to the upside. However, I would like to see a decisive move above 0.7400 (R2) before getting confident on larger bullish extensions. Something like that may initially aim for the 0.7450 (R3) resistance barrier, marked by the inside swing low of the 5th of May. Taking a look at our short-term oscillators though, I would stay mindful that a corrective setback could be on the cards before the bulls decide to take control again. The RSI has turned down again after it hit resistance near its 70 line, while the MACD, although above both its zero and trigger lines, shows signs that it could start topping. As for the larger trend, I see that on the 22nd of May, the pair printed a higher low, something that keeps the door open for further advances. Nevertheless, a clear close above 0.7450 is needed to confirm a forthcoming higher high and keep the longer-term outlook positive.
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