AUD/USD Outlook: Strong bearish acceleration turns focus at 0.7054 base

Slobodan Drvenica Windsor Brokers

AUDUSD

The Australian dollar holds in red in early European trading on Thursday, following strong fall in Asia that turned near-term bias to bearish mode.
Stronger Australian jobs data initially boosted the pair to new two-week high at 0.7207 but report that China banned Australian coal imports at port Dalian indefinitely smashed the Aussie dollar.
Quick bearish acceleration in reaction to the news broke below 10SMA (0.7112) and dipped below 0.71 handle, pressuring pivotal support at 0.7070 (Fibo 38.2% of 0.6706/0.7295) and threatening retest of 0.7054 base (11/12 Feb lows).
Fresh weakness returned daily MA's to bearish setup, with slow stochastic heading south and rising bearish momentum, adding to negative outlook. Close below 10SMA is needed to confirm scenario.

Res: 0.7112; 0.7146; 0.7160; 0.7207
Sup: 0.7070; 0.7054; 0.7000; 0.6931

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7226
2. R2 0.7204
3. R1 0.7184
PP 0.7162
1. S1 0.7142
2. S2 0.712
3. S3 0.71

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 makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.