AUD/USD outlook: Extended weakness pressures key supports
|AUD/USD
The Australian dollar extends strong fall into second day (the pair was down 1.02% on Thursday and fell nearly 1% in early Friday), hitting new five-week low and pressuring key supports. The Aussie came under fresh pressure on risk aversion over uncertainty about the conflict in Ukraine and worries about China’s economic growth.
Fresh weakness completed a failure swing pattern on daily chart that signals continuation of downtrend from 0.7661 (Apr 5 high).
Bears cracked pivotal Fibo support at 0.7314 (50% retracement of 0.6967/0.7661 rally) and pressure key levels at 0.7292/83 (200DMA/daily cloud top) violation of which would add to bearish signals and open way for deeper drop towards 0.7232/04 (Fibo 61.8%/daily cloud base).
Daily studies maintain strong bearish momentum that supports the action, however bears may slow on headwinds from 200DMA and rising cloud top, but will remain in play while the price holds below 0.7400 (falling daily Tenkan-sen).
Res: 0.7332; 0.7369; 0.7397; 0.7428.
Sup: 0.7292; 0.7283; 0.7261; 0.7232.
Interested in AUD/USD 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.