AUDUSD Outlook: Bears look for extension towards key support at 0.7202
The Australian dollar extends weakness on Friday, holding firmly in red for the fourth consecutive day and on track for strong bearish weekly close.
Extension of Thursday’s strong bearish acceleration was partially limited by better than expected China’s PMI data for Aug and could be further obstructed by strengthening momentum, but overall picture remains bearish and keeps risk at the downside.
Higher base at 0.7140 zone (23/24 Aug lows) is under pressure, with break here to open way towards key support at 0.7202 (15 Aug low, the lowest since 02 Jan 2017). Limited upticks could be seen as positioning for fresh downside and only firm break above daily Tenkan-sen (0.7309) could sideline immediate bears.
Res: 0.7267; 0.7309; 0.7327; 0.7349
Sup: 0.7214; 0.7202; 0.7190; 0.7160
Interested in AUDUSD technicals? Check out the key levels
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.
