AUDUSD – Daily Kijun-sen/bear-trendline continue to cap recovery rally

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie shows strong hesitation at 0.7467 barrier (daily Kijun-sen/Fibo 61.8% of 0.7554/0.7327 downleg/bear-trendline off 0.7747) where last week's rally was capped. Monday's action is so far shaped in Doji, capped by bear-trendline and supported by 20SMA and showing indecision, however, risk of fresh weakness exists on bearish daily studies and revrsal of slow stochastic from overbought territory. Extension below 20SMA (0.7434) would be seen as initial signal of weakness, with loss of 10SMA / daily Tenkan-sen at 0.7400 and extension below 4-hr cloud (spanned between 0.7402 and 0.7385) to signal reversal from 0.7467 and likely end of rally from 0.7327 (09 May low) which marks correction of larger downtrend from 0.7747. Alternatively, sustained break above 0.7467 pivot would signal fresh extension of bull-leg from 0.7327 and expose upper targets at 0.7500 and 0.7554.

Res: 0.7467; 0.7500; 0.7544; 0.7554
Sup: 0.7434; 0.7404; 0.7385; 0.7360

Interested in AUD/USD technicals? Check out the key levels

1. R3 0.7485
2. R2 0.7472
3. R1 0.7462
PP 0.7449
1. S1 0.7438
2. S2 0.7426
3. S3 0.7415

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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