AUD/USD Outlook: Aussie ticks higher on improved risk sentiment but the downside remains vulnerable

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie stands at the front foot on Friday following double rejection at daily cloud base/10SMA (0.7050/64), but the upside remains limited by cloud top /20SMA (0.7096/98) for now. Improved risk sentiment on US/China trade talk progress inflated the Australian dollar, but doubts persist as initial Trump/Xi summit has been delayed. Also signals of slowdown of Australian economy and increasing possibilities of rate cut, continue to weigh. Daily techs remain bearishly aligned as bearish momentum continues rise, stochastic is reversing from overbought territory and MA's are in bearish setup that keeps the downside vulnerable. Eventual close below 10SMA / cloud base would generate negative signal which could be boosted on extension below 0.7041/39 (Thursday's spike low / Fibo 61.8% of 0.7002/0.7097 recovery leg and risk retest of key 0.70 support.

Res: 0.7096; 0.7106; 0.7126; 0.7159
Sup: 0.7050; 0.7039; 0.7025; 0.7000

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7152
2. R2 0.7126
3. R1 0.7094
PP 0.7068
1. S1 0.7036
2. S2 0.701
3. S3 0.6978

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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