AUD/USD Outlook: Aussie dips to 0.71 support zone after dovish RBA minutes

Slobodan Drvenica Windsor Brokers

AUDUSD

The Australian dollar holds in red in early European trading on Tuesday and pressures 0.71 support, hit by RBA minutes, released in Asia.
The central bank pointed in significant uncertainties on the economic outlook, mainly due to strong fall in housing market that would sideline expectations for change in interest rates in the near-future.
Strong upside rejection on Monday resulted in daily Doji with long upper shadow which could be initial signal of recovery stall.
Corrective advance from 0.7054 base lost traction at strong resistance zone (0.7148/57), provided by a cluster of converged daily MA's and subsequent dip so far retraced 50% of 0.7054/0.7160 recovery leg, increasing risk of further weakness.
Rising bearish momentum on daily chart supports scenario, with extension and close below falling 10SMA (0.7101) to risk return to 0.7054 base. Daily cloud twists on Thursday and could also attract bears.

Res: 0.7119; 0.7143; 0.7160; 0.7174
Sup: 0.7101; 0.7094; 0.7079; 0.7054

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7192
2. R2 0.7176
3. R1 0.7155
PP 0.7139
1. S1 0.7118
2. S2 0.7102
3. S3 0.7081

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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