AUD/USD Outlook: Dovish RBA pushes Aussie to new multi-month lows
AUDUSD
The Australian dollar hit new 6 1/2 month low against the US dollar on Tuesday, extending fall from 0.7022 high into seventh straight day. Weak Australian housing data, released overnight and more important comments from RBA, which reiterated its dovish stance and signaled further easing in interest rates, increased pressure on Aussie dollar from US/China trade conflict and fresh tensions between the US and Iran. Bearish studies support scenario, however, bears may reduce the pace on strongly oversold conditions. Immediate supports at 0.6827/26 (Fibo 123.6% projection / Jan 2016 lows) are under pressure and bears may extend towards projections at 0.6804 (Fibo 138.2%) and 0.6767 (Fibo 161.8%). Former base at 0.6864 now acts as solid resistance, ahead of falling 5SMA (0.6881).
Res: 0.6864; 0.6881; 0.6900; 0.6927
Sup: 0.6826; 0.6804; 0.6767; 0.6744
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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.
