AUDUSD – negative outlook while falling 20SMA caps

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie dollar stands at the back foot on Friday, with upside being repeatedly capped by falling 20SMA (0.7528) and fresh weakness probing through hourly cloud (0.7519/0.7497).
Initial bearish signal is generating on formation of 1/10SMA bear-cross as near-term recovery from 0.7447 higher base stalled at 0.7497 and closed below 20SMA.
Stronger dollar also keeps the pair under pressure, along with overall bearish daily techs, but the notion is partially offset by strengthening momentum.
Close below 10SMA (0.7500) is needed to maintain fresh pressure and open way for further easing.
Conversely, break and close above 20SMA would generate positive signal for retest of key barrier at 0.7565 (Fibo 38.2% of 0.7812/0.7412 / double upside rejection).

Res: 0.7528; 0.7547; 0.7565; 0.7598
Sup: 0.7497; 0.7472; 0.7447; 0.7433

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7594
2. R2 0.7571
3. R1 0.7541
PP 0.7519
1. S1 0.7489
2. S2 0.7466
3. S3 0.7436

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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