AUDUSD – broken bull-trendline is expected to cap recovery

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie is in recovery mode after hitting fresh low of the month at 0.7907 in early hours of Friday's trading, in extension of Thursday's strong fall (the biggest one-day loss since 03 May). Fresh weakness of the greenback on renewed tensions over North Korea boosted the Aussie dollar for bounce from dangerous territory, as bearish extension on Friday approached strong support at 0.7890, provided by top of rising daily cloud.
Near-term studies hold bearish tone while are bearishly aligned following repeated strong upside rejection above 0.8100 and Thursday's break and close below main bull trendline at 0.8000 (the trendline is drawn from 0.7369, 02 June low). Current corrective rally would face strong barrier at 0.8000 (broken trendline/daily Tenkan-sen / 50% retracement of 0.8102/0.7907 downleg) which is expected to cap recovery ahead of fresh attempts lower.
Conversely, break and close above 0.8000 pivot would shift near-term focus higher again and signal higher low at 0.7907. Extension above 0.8028 (Fibo 61.8% of 0.8102/0.7907) is needed to confirm reversal.

Res: 0.7982; 0.8000; 0.8028; 0.8035
Sup: 0.7940; 0.7907; 0.7890; 0.7865

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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