AUD/USD outlook: Hits six-month low after break of key supports

Slobodan Drvenica Windsor Brokers

AUD/USD

Australian dollar remains in a steep fall for the third consecutive day, driven by rising US dollar on safe haven buying / hawkish Fed and higher than expected estimation for the US Q1 GDP.

The Aussie fell to the lowest in more than six months against its US counterpart, in extension of Wednesday’s bearish acceleration (down 1.1% for the day), which generated strong bearish signal on close below pivotal supports at 0.6563/47 (2023 low / Fibo 61.8% of 0.6170/0.7156 advance).

Signals still require confirmation on weekly close below these levels which will open way for further retracement of 0.6170/0.7156 rally.

Daily studies are firmly bearish but oversold and warning that investors may soon start to collect profits from 2.1% drop in past three days.

Consolidation should be limited and offer better selling opportunities, while capped under 0.6547/63 zone (former key supports reverted to strong resistances) unless significant changes in fundamentals.

Res: 0.6547; 0.6563; 0.6573; 0.6622.

Sup: 0.6480; 0.6422; 0.6403; 0.6386.

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.6584
2. R2 0.6566
3. R1 0.6535
PP 0.6517
1. S1 0.6487
2. S2 0.6468
3. S3 0.6438

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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