AUD/USD Outlook: Optimistic comments fuel recovery by key obstacles still cap

Slobodan Drvenica Windsor Brokers

AUD/USD

The Australian dollar regained traction and rose near 0.6900 in Asia/Europe on Monday, fueled by comments from RBA Governor Lowe who said that rising currency (Aussie advanced over 20% vs US dollar in the period mid-March/Mid-June) is not a problem yet and pointed to the economic recovery as the impact of pandemic lockdown, seems to be smaller than feared.
Daily studies are in mixed mode as momentum is breaking into negative territory and 5/10/20DMA's are conflicting.
Recovery faces strong obstacles at 0.6892 (10DMA) and 0.6908 (100WMA), clear break of which would spark further recovery.
The downside is expected to remain vulnerable while 10DMA caps, while stronger bearish signal could be expected on eventual close below 20DMA (0.6851) which tracks the advance since early Apr.

Res: 0.6892; 0.6908; 0.6920; 0.6976
Sup: 0.6851; 0.6807; 0.6776; 0.6737

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

1. R3 0.6971
2. R2 0.6941
3. R1 0.6888
PP 0.6859
1. S1 0.6806
2. S2 0.6776
3. S3 0.6723

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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