AUD/USD outlook: Aussie falls to 8-month low

Slobodan Drvenica Windsor Brokers

AUD/USD

The Australian dollar dipped below 0.73 support in early European trading on Wednesday, extending steep fall into the fifth straight day, pressured by rising US dollar.

A much stronger than expected drop in Australia’s June retail sales, caused by new lockdowns, contributed to Aussie’s weakness.

Bears eye target at 0.7231 (200WMA/Fibo 76.4% of 0.6991/0.800 upleg), violation of which would add to negative stance.

Daily moving averages are in full bearish setup and rising negative momentum points to a continuation of the downtrend, but oversold conditions generate an initial signal that bears may run out of steam soon.

Upticks are expected to offer better selling opportunities as long as falling 10DMA (0.7409) caps, while break here would ease bearish pressure and signal stronger correction.

Res: 0.7340; 0.7389; 0.7409; 0.7444.
Sup: 0.7231; 0.7204; 0.7158; 0.7115.

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

1. R3 0.7417
2. R2 0.7387
3. R1 0.7358
PP 0.7329
1. S1 0.73
2. S2 0.727
3. S3 0.7242

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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