AUDUSD Outlook: Bears to remain intact while 10SMA caps recovery

Slobodan Drvenica Windsor Brokers

AUDUSD

The Australian dollar bounced on Friday after hitting three-week low at 0.7317, ticks ahead of key support at 0.7310 (02 July low).
Weaker US dollar gave a breather to Aussie’s bears which track the weakness of Chinese yuan (posted new one-year low vs dollar).
Consolidation before breaking below 0.7310 pivot is seen as likely near-term scenario, with extended upticks to be capped by 10SMA (0.7404) to keep bearish structure intact.
Bears need confirmation on close below cracked pivot at 0.7325 (Fibo 61.8% of 2016/2018 0.6825/0.8135 uptrend) to generate bearish signal for fresh leg lower.
Break and close below 0.7310 would confirm and open targets at 0.7150 zone (lows of 24 June 2016 / 02 Jan 2017).
Conversely, close above 10SMA would sideline downside risk and signal stronger recovery.

Res: 0.7383; 0.7404; 0.7416; 0.7442
Sup: 0.7314; 0.7310; 0.7269; 0.7244

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7548
2. R2 0.7495
3. R1 0.7427
PP 0.7375
1. S1 0.7307
2. S2 0.7254
3. S3 0.7186

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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