Slobodan Drvenica
Windsor Brokers
The Australian dollar eased on Tuesday, pressured by reduced risk appetite but remains within narrow range that extends into third day.
Recovery rally from spike low at 0.6706, posted after 3 Jan flash crash, faces strong headwinds from daily cloud (spanned between 0.7207 and 7285), as repeated attempts to clearly break into cloud were so far unsuccessful.
Cloud base marks strong barrier while the downside remains protected by converged 55/100SMA's at 0.7180 zone that marks the floor of near-term congestion.
Negative signals come from slow stochastic which reversed from overbought zone while momentum and RSI turned neutral after ascending in recent sessions. Break below 0.7180 would signal pullback which needs confirmation on extension below a cluster of 30/10/20SMA's (between 0.7152 and 0.7109).
Conversely, eventual close within daily cloud would generate bullish signal, with extension above 0.7231 (Fibo 76.4% of 0.7393/0.6706) needed to expose pivotal cloud top (0.7285) and confirm bullish continuation.
Res: 0.7235; 0.7285; 0.7330; 0.7393
Sup: 0.7180; 0.7152; 0.7109; 0.7033
Interested in AUDUSD technicals? Check out the key levels
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.
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