AUDUSD – risk of recovery stall in play after short-lived spike above 0.7440 pivot

Slobodan Drvenica Windsor Brokers

AUDUSD

The Aussie spiked above strong barrier at 0.7440 on Thursday after Australian unemployment fell to four-month low at 5.7% in April and 37.4K new jobs added that heavily beat forecast for 5.0K rise.

The pair rallied to fresh over two-week high at 0.7464 on solid data, but gains were so far short-lived and capped just under strong barrier provided by daily Kijun-sen line. Subsequent pullback below 0.7440 pivot put pressure on lower trigger at 0.7400 zone, signaling risk of reversal on break lower.

With overall bias being with bears and daily slow stochastic reversing from overbought zone, risk of recovery rally stall increases.

Yesterday’s long-legged Doji signaled indecision, with today’s action being so far in the same shape that would signal that recovery phase from 0.7327 low is running out of steam.

Firm break below 0.7400 pivot (reinforced by daily Tenkan-sen / 10SMA would generate stronger reversal signal.

Meantime, the pair may spend some time in extended consolidation between daily Tenkan-sen and Kijun-sen boundaries, before establishing in fresh direction.

Firm break above daily Kijun-sen pivot will be bullish.

Res: 0.7444; 0.7467; 0.7500; 0.7544
Sup: 0.7406; 0.7395; 0.7376; 0.7364

Interested in AUDUSD technicals? Check out the key levels

1. R3 0.7511
2. R2 0.7478
3. R1 0.7455
PP 0.7422
1. S1 0.7398
2. S2 0.7365
3. S3 0.7342

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 struggles below 1.1800 ahead of US data, Fedspeak

EUR/USD remains trapped in a tight range below 1.1800 in the European session on Tuesday. The pair struggles amid a modest US Dollar strength and an improvement in risk sentiment, even as US tariff uncertainty lingers. The focus now remains on the US data and Fedspeak.

GBP/USD stays defensive below 1.3500 as USD firms up

GBP/USD stays on the back foot below 1.3500 in the European trading hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US weekly ADP Employment Change and Consumer Confidence data due later in the day, along with speeches from Federal Reserve officials.

Gold holds pullback below $5,200 amid USD uptick

Gold holds moderate losses below $5,200 in European trading on Tuesday, though it lacks follow-through selling. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar attracts fresh buyers ahead of mid-tier data and Fedspeak.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.

AI-scare trade and tariff uncertainty takes hold

It was quite a day, with AI-disruption fears and tariff uncertainty triggering a risk-off session. By now, it's nearly impossible to have missed the Supreme Court's 6-3 decision that struck down US President Donald Trump's reciprocal tariffs last Friday.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.