AUDUSD falling hourly cloud/200SMA to cap near-term recovery attempts

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie dollar bounced in early Thursday's reading after strong two-day fall found support at 0.7490 and improving tone of stocks and base metals underpinned AUD's near-term recovery. Steep descend in past two days that took out important supports and weakened near-term structure, as bears approached key support at 0.7472 (lows of 10-12 Apr, reinforced by the base of rising daily cloud) loss of which would trigger fresh bearish extension of descend from 0.7747 high, towards 0.7453 and 0.7384 (Fibo 50% and 61.8% of 0.7159/0.7747 rally) respectively. Overall bearish structure sees limited recovery before fresh weakness, with falling hourly cloud (spanned between 0.7537 and 0.7556) reinforced by 200SMA (0.7549) expected to cap rallies.

Res: 0.7537; 0.7549; 0.7556; 0.7570

Sup: 0.7520; 0.7490; 0.7471; 0.7453

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

1. R3 0.7618
2. R2 0.7591
3. R1 0.7544
PP 0.7518
1. S1 0.7471
2. S2 0.7444
3. S3 0.7397

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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