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.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD recovery reaches critical 1.1170 price zone

The EUR/USD pair bounced from a fresh multi-year low of 1.1106, although the advance stalled in the 1.1170 region, with the pair having been unable to extend gains beyond it since last Friday. Bulls to become more courageous if the advance extends beyond 1.1200.


GBP/USD modestly up for the day after flirting with 1.2600

The GBP/USD pair is poised to close in positive ground for the first time in ten days, a result of an extremely overbought dollar and US data giving bulls a reason to take some profits out of the table. Brexit chaos persists, Pound gains unlikely.


USD/JPY slumps to mid-109s as 10-year US T-bond yield drops 4% today

The bearish pressure surrounding the USD/JPY pair gathered strength in the American trading hours and dragged the USD/JPY pair to a weekly low of 109.50.


Market confidence in doldrums as PMI surveys plummet

US and German PMI surveys failed to muster any form of confidence in the growth picture, with stocks and the dollar under pressure today. The UK political picture looks bleak, with the chances of a no-deal Brexit or general election rising with May’s departure. 

Read more

Gold jumps to weekly tops and retreats, still well bid near $1280 level amid risk-off mood

Gold built on its intraday positive move and spiked to fresh weekly tops, around the $1284 region in the last hour, albeit retreated a bit thereafter.

Gold News