AUD/USD – pullback may pause at daily cloud top

Slobodan Drvenica Windsor Brokers

AUD/USD

The Aussie holds in red for the fourth straight day and probed below strong supports at 0.7623/18 (top of ascending daily cloud / sideways-moving daily Kijun-sen).Dips were so far contained by 4-hr cloud base at 0.7604.

Firm break here would generate stronger bearish signal for deeper correction of 0.7489/0.7747 upleg, as the pair is on track for strong bearish weekly close.

Daily studies are moving into bearish mode and together with negative near-term technicals maintain downside risk.

However, the price may show hesitation at these supports as slow stochastic is reversing on 4-hr chart and entering oversold territory on daily.

While strong near-term bearish sentiment persists, we expect limited upside action, with focus still at lower targets at 0.7588 (Fibo 61.8% of 0.7489/0.7747) and more significant 0.7543 (200SMA / weekly cloud top).

Return above broken 10SMA (0.7653) would ease immediate bearish pressure, while sustained break above 0.7700 barrier is needed to confirm reversal.

Res: 0.7640; 0.7653; 0.7682; 0.7700
Sup: 0.7604; 0.7588; 0.7543; 0.7506

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7722
2. R2 0.7701
3. R1 0.7664
PP 0.7643
1. S1 0.7606
2. S2 0.7585
3. S3 0.7548

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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