The Aussie dollar bounces from new low at 0.6891 (the lowest since 3 Jan) in corrective action as daily stochastic reverses from oversold territory.
Overall picture remains bearish on both, daily and weekly chart and favors further downside, as bears were boosted by Wednesday’s close below key Fibo support at 0.6931 (61.8% retracement of 0.6643/0.7295 rally).
Weak Australian jobs data (Unemployment rose to 5.2% in Apr from 5.1% and 5.0% f/c while 28.4K new jobs were created in Apr vs 30K f/c) increase expectations for rate cut, the earliest in June and Aug cut now being fully priced in.
Limited corrective action is seen as positioning for fresh downside, as bears look for confirmation on repeated close below broken 0.6931 Fibo support, which now acts as initial resistance (reinforced by the base of thick falling hourly cloud).
Falling 5SMA (0.6948) marks next barrier, reinforced by hourly cloud top, guarding falling 10SMA (0.6974), break of which would sideline bears and signal stronger recovery.

Res: 0.6931; 0.6948; 0.6974; 0.7000
Sup: 0.6915; 0.6891; 0.6845; 0.6800



Interested in AUDUSD technicals? Check out the key levels

    1. R3 0.6982
    2. R2 0.6966
    3. R1 0.6947
  1. PP 0.6931
    1. S1 0.6912
    2. S2 0.6896
    3. S3 0.6877


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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD looks south as markets scale back Fed rate cut bets

EUR/USD risks falling below key support at 1.1193 as markets seem to have scaled back expectations of Federal Reserve (Fed) rate cuts in the overnight trade. Technical set up favors the bears.


GBP/USD: Recovery underway as traders await UK CPI for fresh direction

A minor correction in the US dollar across its main competitors appears to prompt a recovery in GBP/USD from 27-month lows, as the rates hold above the 1.24 handle ahead of the UK CPI data. Hard Brexit woes to remain in play.


USD/JPY supported by positive S&P 500 futures amid weaker USD

USD/JPY found buyers ahead of the 108 handle amid an uptick in S&P 500 futures, although the recovery appears limited by broad-based USD retreat and mixed Asian equities. Focus on US housing data for fresh impetus.


UK CPI Preview: Brexit above all else

The monthly change in the consumer price index is expected to be flat in June down from 0.3% in May. The annual rate is predicted to be unchanged at 2 %. The core CPI rate is forecast to be flat in June, after gaining 0.2% in April.

Read more

Gold clings to 21-DMA amid less active markets

Gold carries the 3-week old lower high formation forward as it clings to 21-day moving average (DMA) during Wednesday’s less active market hours ahead of the European session. Lack of major data/news during the Asian session limits market moves.

Gold News