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.

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