AUDUSD – bears remain fully in play but extended consolidation is to precede fresh downside
|The Aussie dollar bounced above 0.77 mark on Friday after strong fall on Thursday threatened of retesting new three-month low at 0.7672, posted on Wednesday.
Recovery attempts were so far limited (capped at 0.7730) as technicals are firmly bearish and reinforced by risk aversion on trade war fears, but bears lacked strength for stronger downside action so far.
Near-term price action remains in extended congestion between new low (0.7372) and broken 100SMA (0.7782) which rejected repeated attacks and is reinforced by formation of 10/100SMA bear-cross, which formed today.
Bears may stay on hold for some time before continuing, with limited upside actions to be capped by falling 10SMA (currently at 0.7768).
Eventual break lower to expose support at 0.7650 (Fibo 76.4% of 0.7500/0.8135 rally), loss of which would risk return to key 0.7500 support as no significant obstacles lays en-route.
To neutralize persisting bearish pressure, break and close above 100SMA is required.
Res: 0.7730; 0.7768; 0.7775; 0.7804
Sup: 0.7686; 0.7672; 0.7650; 0.7600
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.