AUDUSD: Was choppy but remained heavy on Thursday

Jim Langlands FX Charts

The Aud was choppy but remained heavy on Thursday, in falling to a low of 0.7546, before a dead-cat bounce, to 0.7555, to finish the day pretty much unchanged. As before, having now broken below the long-term rising trend line support, commencing in Jan 2106, the path looks increasingly towards the downside, with strong US bond yields likely to keep the pressure on the Aud.

1 hour/4 hour indicators: Mixed. –Mixed.

Daily Indicators: Turning lower

Weekly Indicators: Turning lower

Preferred Strategy: The Aud remains heavy, in trading down to 0.7546 on Thursday , and would seem to have further losses to come, where the initial support will be at the Fibo levels at 0.7520/30 and then at the early December low of 0.7501. Under here would open the way to much lower levels, with little support seen ahead of the 1 June 2017 low at 0.7371.

On the topside, resistance will be seen at the session high of 0.7588, if we get there, and at the 25 Apr high of 0.7605. Further out, above 0.7620 would allow a return to 0.7640/50 although this looks rather doubtful to be seen again for a while.

Selling rallies is preferred.

Sell AudUsd @ 0.7585. SL @ 0.7615, TP @ 0.7480

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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