AUDUSD – fresh extension lower offsets reversal signal from Wednesday’s Doji
|AUDUSD
The Aussie extended weakness on Wednesday and hit new 4 ½ month low at 0.7562, offsetting initial reversal signal on Tuesday’s Doji candle.
Bears so far ignore oversold conditions on daily chart and keep the pair under pressure, as greenback continues to trend higher, boosted by rising US yields.
Repeated close below main bull-trendline, drawn off 0.6826 (2016 low) was strong bearish signal for extension of broader downtrend from 0.8135 (2018 high) for test of next strong support at 0.7500 (08/12 Dec lows).
However, corrective action should be anticipated before final push towards 0.7500 target, with broken trendline (0.7623) and broken Fibo support / former base (0.7635/40) marking solid barriers, guarding falling 10SMA (0.7687) and converged 10/20SMA’s (0.7700).
Res: 0.7606; 0.7623; 0.7640; 0.7687
Sup: 0.7562; 0.7530; 0.7500; 0.7480
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.