AUD/USD Outlook: Directionless mode between 55/100SMA’s and daily cloud base
|The Australian dollar eased on Tuesday, pressured by reduced risk appetite but remains within narrow range that extends into third day.
Recovery rally from spike low at 0.6706, posted after 3 Jan flash crash, faces strong headwinds from daily cloud (spanned between 0.7207 and 7285), as repeated attempts to clearly break into cloud were so far unsuccessful.
Cloud base marks strong barrier while the downside remains protected by converged 55/100SMA's at 0.7180 zone that marks the floor of near-term congestion.
Negative signals come from slow stochastic which reversed from overbought zone while momentum and RSI turned neutral after ascending in recent sessions. Break below 0.7180 would signal pullback which needs confirmation on extension below a cluster of 30/10/20SMA's (between 0.7152 and 0.7109).
Conversely, eventual close within daily cloud would generate bullish signal, with extension above 0.7231 (Fibo 76.4% of 0.7393/0.6706) needed to expose pivotal cloud top (0.7285) and confirm bullish continuation.
Res: 0.7235; 0.7285; 0.7330; 0.7393
Sup: 0.7180; 0.7152; 0.7109; 0.7033
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.