AUDUSD Outlook: Fresh recovery looks for break through Fibo barrier at 0.7145
AUDUSD
The Aussie dollar holds positive tone on Monday and accelerated higher in European trading, on positive signals from China and weaker greenback. Fresh rally pressures pivotal barrier at 0.7145 (Fibo 38.2% of 0.7314/0.7041 bear-leg), break of which would generate bullish signal for extension of recovery from 0.7040 zone base. Formation of 5/10SMA bull-cross and north-heading daily momentum which crossed above its 7-d SMA, underpin the action. Above 0.7145 Fibo barrier, recovery would focus converged falling 20/30SMA's, which mark next barriers at 0.7170 zone (also near Fibo 50% of 0.7314/0.7042 descend), which guard pivot at 0.7210 (Fibo 61.8%). Overbought slow stochastic warns of consolidative action in the near-term (no clear signal yet) with dips to be contained by 10SMA (0.7101) to keep bulls in play.
Res: 0.7145; 0.7170; 0.7210; 0.7238
Sup: 0.7101; 0.7080; 0.7042; 0.7000
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.
