• AUDUSD endorses negative outlook
• Momentum oscillators shifts down

AUDUSD is declining considerably towards a fresh four-month low of 0.6407, breaking the short-term narrow range to the downside and endorsing the bearish tendency that started on September 30. The stochastic oscillator is heading south approaching the 20 level, while the RSI indicator is pointing down below the neutral threshold of 50.

If the retreat continues, the next immediate support for bears to look for is the 0.6360 barrier, registered on August 4. Diving further, the outlook would turn to deeply negative, challenging the 0.6270 support, taken from the tough in October 2023.

Alternatively, a rise back above the 0.6430 resistance could see traders retesting the near-term downtrend line at 0.6510 ahead of the upper boundary of the range at 0.6550. Even higher, the bearish crossover within the 50- and the 200-day SMAs at 0.6630 could be a tough obstacle to overcome.

To conclude, AUDUSD has been creating a lower low in the short-term view, switching the outlook to a more negative one. However, a jump above the 200-day SMA at 0.6630 may change the bias to positive again.