AUD/USD Outlook: Risk of fresh weakness while 10SMA caps recovery attempts
|AUDUSD
The Australian dollar regained traction on Tuesday and bounced from daily cloud which repeatedly contained attacks in past sessions. Fresh strengths emerges from concerns about dovish Fed on Wednesday, as well as minutes of RBA's last policy meeting. The minutes were generally unchanged but kept hints for potential near future action. Although reversal pattern is forming on daily chart, risk of fresh weakness remains high, with current upticks so far seen as positioning. Strong bearish momentum and negative setup of daily studies supports scenario. Recovery attempts face strong headwinds from falling 10SMA (0.7207) and while the latter caps, risk of retesting cracked pivot at 0.7163 (Fibo 61.8% of 0.7020/0.7393) and stronger bearish acceleration on break, is expected to remain in play. Break above 10 SMA and nearby 100SMA (0.7220) would provide relief, but stronger upside action and close above pivotal barrier at 0.7246 (converged 20/30SMA/13 Dec recovery high) is needed to neutralize bearish threats and signal stronger recovery.
Res: 0.7207; 0.7220; 0.7246; 0.7272
Sup: 0.7173; 0.7163; 0.7108; 0.7074
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.