Slobodan Drvenica
Windsor Brokers
The Australian dollar stands at the back foot in European session on Wednesday, following repeated failure at key barriers at 0.7035/36 (daily cloud top/base of thick weekly cloud), as Tuesday's action stalled at 0.7044, ticks below previous rejection of 4 July at 0.7047.
Bids from psychological 0.70 support keep for now the price above this level, but risk of deeper pullback exists, as Tuesday's close completed bearish outside day pattern which generated negative signal.
Momentum on daily chart is heading south and is about to break into negative territory and stochastic is emerging from overbought territory that supports bearish scenario.
Clear break below 0.70 zone (also Fibo 38.2% of 0.6910/0.7044 upleg) would risk deeper pullback and generate initial signal of double-top formation (0.7047/44).
Australian jobs data are due early Thursday and could provide fresh signals.
Forecast shows 9.1K new jobs created in June, compared 42.3K in May that could have negative impact on Aussie and spark fresh weakness if release comes in line or below expectations.
Conversely, upbeat results could inflate the pair for renewed attempt at recent peaks at 0.7044/47, violation of which would generate bullish signal for extension towards 200DMA (0.7090).
Res: 0.7020; 0.7035; 0.7047; 0.7090
Sup: 0.7000; 0.6983; 0.6961; 0.6942
Interested in AUDUSD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.