AUD/USD Outlook: Aussie falls below key supports on risk-off sentiment after weak data from China
|AUDUSD
The Australian dollar was sharply lower on Friday, pressured by weaker than expected China's IP and retail sales data that pressured riskier assets. Fresh bears reversed recovery rally of past four days (0.7177/0.7246) and broke below thinning daily cloud which twists on Monday and pivotal Fibo support at 0.7163 (Fibo 61.8% of 0.7020/0.7393) in extension. Near-term structure weakened after today's fall as momentum moved into negative territory and daily MA's turned into negative setup. Today's close below 0.7163 pivot would add to negative outlook for extension of pullback from 0.7393 (04 Dec recovery high) towards next support at 0.7108 (Fibo 76.4%). The pair is on track for the second consecutive bearish weekly close, after last week's weekly bearish engulfing pattern generated strong bearish signal. Broken former low at 0.7177 and 55SMA at 0.7185, mark initial resistances, with stronger upticks expected to remain below falling 100SMA (0.7224) which limited recent recovery.
Res: 0.7177; 0.7185; 0.7224; 0.7239
Sup: 0.7153; 0.7108; 0.7074; 0.7050
Interested in AUDUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.