AUD/USD outlook: Aussie accelerates through 0.70 support ahead of US data, FOMC minutes

Slobodan Drvenica Windsor Brokers

AUD/USD

The Aussie dollar slips 0.8% vs its US counterpart in European trading on Wednesday, pressured by weaker than expected Australian wage growth data and falling iron ore prices.

Fresh bearish acceleration took out psychological 0.70 support and broke below pivotal Fibo support at 0.6962 (38.2% of 0.6681/0.7136 upleg), with close below here to generate bearish signal.

Rising negative momentum on daily chart adds to bearish near-term outlook, unmasking targets 0.6909 (50% retracement) and more significant 0.6869 (Aug 5 trough) violation of which will confirm an end of bull phase from 0.6681 (July 14 low, the lowest since June 2020).

Broken 0.70 support should act as key barrier and limit upticks to keep bears in play.

Res: 0.6962; 0.6986; 0.7000; 0.7029.
Sup: 0.6926; 0.6909; 0.6869; 0.6855.

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.7146
2. R2 0.7108
3. R1 0.7065
PP 0.7027
1. S1 0.6984
2. S2 0.6947
3. S3 0.6904

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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