AUD/USD Outlook: Daily cloud base continues to limit post-flash crash recovery

Slobodan Drvenica Windsor Brokers

AUDUSD

The Australian dollar faces strong headwinds from daily cloud base (0.7207) and eases on Monday after repeated failure to penetrate daily cloud. Bearish divergence on daily slow stochastic and significantly weaker than expected China's trade data add to negative signals. Converged 55/100SMA's (0.7182) which held last Friday's action are under strong pressure, with sustained break lower to generate fresh bearish signal. Deeper pullback could extend towards pivotal supports at 0.7118/10 zone (10/20SMA's which formed bull-cross / Fibo 23.6% of 0.6706/0.7235). Dips should find ground here to keep bullish near-term structure off 0.6706 (03 Jan post flash crash low) for renewed attack at daily cloud base.

Res: 0.7207; 0.7235; 0.7263; 0.7332
Sup: 0.7180; 0.7156; 0.7110; 0.7077

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7296
2. R2 0.7266
3. R1 0.7235
PP 0.7205
1. S1 0.7174
2. S2 0.7144
3. S3 0.7113

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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