AUDUSD – risk of deeper pullback on overbought studies remain in play

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie is holding within the tight range after failing to benefit on upbeat Chinese data. The pair stays below Friday’s high at 0.7833 (the highest since 21 Apr 2016), but psychological 0.7800 support limits the downside attempts on minor profit taking for now.
Overbought daily studies warn of deeper correction following last week’s strong rally (the pair was up nearly 3% for the week), but so far lacking stronger signal. Firm break below 0.7800 handle is needed to trigger fresh bearish acceleration and expose supports at 0.7772/33 (Fibo 23.6% and 38.2% of 0.7572/0.7833 upleg) respectively.
Upper break points at 0.7833 (21 Apr 2016 high) and 0.7848 9Fibo 38.2% of 0.9503/0.6825 descend) remain in near-term focus.
Res: 0.7833; 0.7848; 0.7907; 0.7940
Sup: 0.7800; 0.7772; 0.7733; 0.7702

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7842
2. R2 0.7837
3. R1 0.7831
PP 0.7826
1. S1 0.7819
2. S2 0.7814
3. S3 0.7807

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.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.