AUDUSD – Recovery faces strong headwinds from trendline resistance

Slobodan Drvenica Windsor Brokers

AUDUSD

Recovery rally from Tuesday's low at 0.7530 extends into third consecutive day and faces strong headwinds at 0.7540 zone. Resistance is provided by 20SMA/bear-trendline from 20 Sep 0.8102 peak and marks key obstacle for near-term recovery. Corrective action should be ideally capped here to keep underlying bears intact for fresh extension lower. Stronger signal of recovery stall would be generated on close below broken 10SMA (0.7602) and would turn focus towards targets at 0.7547 (20-d lower Bollinger band) and key 0.7530 support (21 Nov 5 1/2 month low). On the other side, sustained break above trendline resistance would signal recovery extension and expose 200 SMA at 0.7694.

Res: 0.7638; 0.7665; 0.7694; 0.7726
Sup: 0.7602; 0.7547; 0.7530; 0.7516

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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