AUD/USD Outlook: Pullback needs to hold above key supports at 0.7033/00 zone to keep larger bulls in play

Slobodan Drvenica Windsor Brokers

AUDUSD

The Australian dollar stands at the back foot at the beginning of the week following Friday's close in red after bulls stalled on approach to 200DMA (0.7090).
Stronger US dollar on renewed safe-haven bid on Middle East tensions and lowered bets on more radical action from Fed this month, keep the Aussie in defensive mode.
Fresh weakness pressures top of thick daily cloud (0.7033) violation of which would risk test of next pivotal supports at 0.7016/00 zone (Fibo 38.2% of 0.6910/0.7082/10/20DMA's/psychological support).
South-heading momentum and stochastic support scenario, however, current easing will be seen as positioning of larger bulls off 0.6831 (18 June low) for renewed attack at 200DMA, while dips stay above 0.7000 handle.
Firm break below 0.7000 pivot would put bulls on hold for deeper correction and unmask supports at 0.6976 (Fibo 61.8%) and 0.6962 (bullish channel support line).

Res: 0.7047; 0.7062; 0.7090; 0.7117
Sup: 0.7016; 0.7000; 0.6976; 0.6962

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7114
2. R2 0.7098
3. R1 0.7069
PP 0.7053
1. S1 0.7024
2. S2 0.7008
3. S3 0.6979

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.

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.