AUDUSD extends weakness after repeated rejection at 200SMA

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie dollar holds in red on Friday and probed below 0.7700 handle, in extension of previous day’s sharp fall.
Repeated rejection at 200SMA, with near-term action being weighed by thickening daily cloud (base of cloud lies at 0.7835), sparked pullback which was helped by stronger greenback.
Negative scenario was supported y formation of double-top on daily chart and the apir registered the biggest one-day losses in past three weeks on Thursday.
Friday’s extension lower broke below 20SMA support (0.7716) and cracked another pivotal support at 0.7707 (Fibo 61.8% of 0.7642/0.7812 upleg).
Close below here is needed to signal an end of recovery phase from 0.7642 and open way for retest of strong support at 0.7640 zone (weekly higher base) reinforced by longer-term bull-trendline, drawn off 0.7158 (02 Jan 2017 low).
Broken 30SMA (0.7733) caps today’s action and guards broken 10SMA (0.7748) which is expected to limit stronger upticks and keep near-term bears in play.

Res: 0.7733; 0.7748; 0.7780; 0.7794
Sup: 0.7699; 0.7682; 0.7640; 0.7600

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7887
2. R2 0.7851
3. R1 0.7791
PP 0.7755
1. S1 0.7694
2. S2 0.7658
3. S3 0.7598

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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