AUDUSD –risk of reversal persists; downside triggers lay at 0.7626/00
|The Aussie is trading around the mid-point of 0.7600/0.7700 congestion after quick reversal from fresh high at 0.7730 (posted on 16 Feb) signaled false break above range tops.
Pullback from 0.7730 was so far held by 10SMA (0.7658) but near-term risk is turning lower after slow stochastic formed bearish divergence pattern and reversed from overbought territory.
Next strong support, daily 20SMA (currently at 0.7626) that tracks the uptrend since early Jan) is in focus, with break here to generate stronger bearish signal.
Extension and close below consolidation range floor at 0.7600 would confirm reversal and open way for stronger correction of 0.7160/0.7730 rally.
Break back above 0.7700/30 is needed to neutralize downside threats and signal bullish continuation.
Res: 0.7688; 0.7700; 0.7730; 0.7755
Sup: 0.7658; 0.7626; 0.7600; 0.7584
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