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.

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