Slobodan Drvenica
Windsor Brokers
AUD/USD
The Australian dollar cracked 0.6700 support on Friday, in extension of pullback after recovery attempts stalled on Wednesday.
Fresh pressure on Aussie comes from comments from Australia's central bank's governor Lowe, who pointed at lowered short-term growth forecast, but kept optimistic view for the longer term.
The RBA is reluctant to cut interest rates as the impact of the action is unclear and said that QE program would start if rates fall below 0.25%.
Fading risk mode also had a negative impact on Australian dollar as rising death toll on coronavirus increases fears in the market.
Technical studies remain bearish on daily chart and add to negative near-term outlook
Thursday's repeated close below falling 10DMA generated negative signal, as today's weakness complete reversal pattern.
Key supports at 0.6678/70 (4 Feb / 2 Oct 2019 lows) are under pressure and break here would risk acceleration towards 0.6261 (Fibo 76.4% of 2001/2011 0.4773/1.1079 ascend).
US report is in focus today and strong figures could further boost the US dollar and deflate Aussie.
Caution on failure to break below 0.6678/70 pivots that would complete inverted hammer candle on weekly chart and signal extended consolidation and possible rebound. Pivotal resistances lay at 0.6800/30 zone and only break here would generate reversal signal.
Res: 0.6728; 0.6762; 0.6774; 0.6800
Sup: 0.6694; 0.6678; 0.6670; 0.6600
Interested in AUD/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.