AUD/USD outlook: Holds in extended sideways mode, awaiting key economic releases for direction signals
AUD/USD
AUDUSD eases further on Monday and breaks below 200DMA which marks approximately the mid-point of 0.6525/0.6620 congestion, in which the pair is holding for the fifth straight day.
Near-term action lacks clear direction signal while holding within the range, as daily MA’s are in mixed setup and momentum indicator is moving along with the centreline, although, the larger picture is still bullishly aligned.
Range floor also marks significant Fibo support (38.2% retracement of 0.6270/0.6690) and near-term bullish bias is expected to remain in play while the price action stays above this level, however lift and close above range top is required to verify bullish signal and shift focus higher.
Conversely, firm break of 0.6525 pivot would risk deeper pullback.
Investors await release of Australia’s business confidence and US inflation report on Tuesday, as well as Fed’s rate decision on Wednesday.
Res: 0.6574; 0.6601; 0.6619; 0.6656.
Sup: 0.6550; 0.6525; 0.6480; 0.6430.
Interested in AUD/USD technicals? Check out the key levels
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.
