AUD/USD outlook: Downside risk increases on rate cut expectations / trade conflict

Slobodan Drvenica Windsor Brokers

AUDUSD

The Australian dollar extends steep fall of this week to new four and a half month low on Friday, weighed by increasing odds for rate cut as early as June and rising fears of escalation of US/China trade conflict.
The pair is on track for the biggest weekly fall since early Feb that adds to negative sentiment after bearish signal was generated on repeated close below strong technical support at 0.6391 (Fibo 61.8% of 0.6706/0.7295).
Daily techs are in full bearish configuration, however, oversold conditions suggest corrective action in coming session.

Res: 0.6897; 0.6915; 0.6931; 0.6955
Sup: 0.6872; 0.6845; 0.6800; 0.6750

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.6971
2. R2 0.6952
3. R1 0.6923
PP 0.6904
1. S1 0.6875
2. S2 0.6856
3. S3 0.6827

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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