AUD/USD – pullback may pause at daily cloud top
|The Aussie holds in red for the fourth straight day and probed below strong supports at 0.7623/18 (top of ascending daily cloud / sideways-moving daily Kijun-sen).Dips were so far contained by 4-hr cloud base at 0.7604.
Firm break here would generate stronger bearish signal for deeper correction of 0.7489/0.7747 upleg, as the pair is on track for strong bearish weekly close.
Daily studies are moving into bearish mode and together with negative near-term technicals maintain downside risk.
However, the price may show hesitation at these supports as slow stochastic is reversing on 4-hr chart and entering oversold territory on daily.
While strong near-term bearish sentiment persists, we expect limited upside action, with focus still at lower targets at 0.7588 (Fibo 61.8% of 0.7489/0.7747) and more significant 0.7543 (200SMA / weekly cloud top).
Return above broken 10SMA (0.7653) would ease immediate bearish pressure, while sustained break above 0.7700 barrier is needed to confirm reversal.
Res: 0.7640; 0.7653; 0.7682; 0.7700
Sup: 0.7604; 0.7588; 0.7543; 0.7506
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