Slobodan Drvenica
Windsor Brokers
The Aussie fell on Wednesday despite weaker US dollar, driven by increased EUR/AUD demand and AUD/JPY sales on current situation in the markets.
Pullback from double upside rejection at 0.7440 zone (50% of 0.7554/0.7327 downleg, reinforced by falling 20SMA and 4-hr cloud top) was so far contained by strong support at 0.7390 provided by 10SMA and nearby daily Tenkan-sen (0.7385), however, risk remains shifted to the downside.
Daily RSI is turning lower and slow stochastic is reversing just under overbought zone boundary, which may signal further easing, as overall picture is bearish.
Stronger negative signal could be expected on firm break below 0.7390/85 pivots that may trigger fresh weakness towards next supports at 0.7373/68 (Fibo 61.8% of 0.7329/0.7444 / 4-hr cloud base), loss of which would confirm reversal and lower top at 0.7444.
Alternative scenario requires current weakness to stay above 0.7390, with fresh attempts higher to emerge from here. Bounce back to pivotal 0.7440 resistance zone and eventual break higher is needed to signal resumption of recovery leg from 0.7329.
Res: 0.7406; 0.7419; 0.7433; 0.7444
Sup: 0.7390; 0.7385; 0.7373; 0.7368
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 retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.