Slobodan Drvenica
Windsor Brokers
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
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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