AUDUSD – Bull-trendline held dips for now but downside remains vulnerable

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie dollar is holding within narrow range around 0.8000 handle on Friday, struggling to extend recovery from Thursday's strong downside rejection at 0.7955 and close above key supports, daily Kijun-sen/main bull-trendline off 0.7370 low. Overall bullish structure remains intact as pullback from 0.8124 high is seen as corrective action ahead of fresh upside, but expected to hold above the trendline. Traders remain cautious ahead of the weekend after North Korea launched another missile today. Stronger downside risk could be expected on firm break below bull-trendline, which would signal deeper correction towards 0.7929 (Fibo 61.8% of 0.7807/0.8124 upleg) and possible extension towards rising daily cloud top (0.7880). Alternatively, rally and close above daily Tenkan-sen (0.8032) would sideline immediate downside threats and shift focus higher.

Res: 0.8016; 0.8032; 0.8058; 0.8100
Sup: 0.7980; 0.7966; 0.7955; 0.7929

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 holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

Bitcoin, Ethereum and Ripple show no sign of recovery

Bitcoin, Ethereum, and Ripple show signs of cautious stabilization on Wednesday after failing to close above their key resistance levels earlier this week. BTC trades below $69,000, while ETH and XRP also encountered rejection near major resistance levels. With no immediate bullish catalyst, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.