AUDUSD Outlook: Aussie was hit by China’s decision but dips were limited so far

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie dollar holds in green after gap-lower opening on Monday and hitting new low at 0.7252, but recovery attempts were so far limited, with Asian high at 0.7281 being so far intact.
Announcement that China is pulling out of trade talks with US, weighs on Australian dollar, with additional pressure coming from formation of reversal pattern on daily chart, after Friday’s action ended in long-legged Doji.
Sideways-moving 30SMA marks initial support at 0.7241, guarding lower pivot at 0.7214 (converged 10/20SMA), break of which would generate bearish signal.
Falling 55SMA is pivotal barrier (0.7310) and break here is needed to neutralize downside risk and signal continuation of broader uptrend from 0.7085 (11 Sep low).

Res: 0.7281; 0.7310; 0.7330; 0.7362
Sup: 0.7252; 0.7241; 0.7214; 0.7194

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7351
2. R2 0.7328
3. R1 0.7309
PP 0.7286
1. S1 0.7267
2. S2 0.7244
3. S3 0.7224

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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