AUDUSD bounces above daily cloud; extended correction not ruled out
Aussie bounces above daily cloud which was penetrated in past two-day action, after pullback from 0.7758 peak, found temporary support at 0.7488. Today’s fresh strength emerged from Wednesday’s bullish close, as long-legged daily candle signaled descend stall and possible formation of reversal pattern. Today’s close above daily cloud top at 0.7517 is needed to generate bullish signal for further recovery. Extended rallies are expected to face strong resistance at 0.7588 (Fibo 38.2% of 0.7758/0.7488/daily Tenkan-sen/Kijun-sen bear cross) which is expected to ideally cap, as daily studies are negative. Only firm break here would neutralize and open way for further retracement of 0.7758/0.7488 pullback, towards its 50% and 61.8% retracement levels at 0.7623 and 0.7655.
Res: 0.7552; 0.7588; 0.7623; 0.7655
Sup: 0.7517; 0.7488; 0.7441; 0.7419
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.
