AUD/USD corrects further from multi-week tops, slides below 0.6500 mark and rebounds


  • AUD/USD witnessed an intraday turnaround from seven-week tops or 100-day SMA barrier.
  • The USD regained some traction following the release of the US initial weekly jobless claims.
  • A mildly softer risk tone further weighed on the aussie and contributed to the intraday slide.

The AUD/USD pair dived to fresh daily lows, below the key 0.6500 psychological mark, albeit quickly recovered few pips thereafter.

The pair stalled its recent bullish trajectory to seven-week tops and witnessed a sharp pullback from 100-day SMA barrier. The intraday slide picked up some additional pace during the early North-American session following the release of Initial Weekly Jobless Claims.

According to the latest report, the number of Americans seeking unemployment-related benefits rose 3.839 million in the week running from April 19 to April 25. This sums up to about 30 million job losses in a month and a half due to coronavirus-induced lockdowns.

The data added to concerns over the severity of the economic damage caused by the pandemic. This, in turn, provided a goodish lift to the US dollar's status as the global reserve currency and turned out to be one of the key factors exerting some pressure on the aussie.

This coupled with a weaker tone around the equity markets further underpinned the greenback's relative safe-haven status against the perceived riskier currency – the Australian dollar – and further collaborated to the pair's intraday slide of around 80 pips.

It will now be interesting to see if the pair can attract any dip-buying at lower levels or the current pullback marks the end of the recent strong recovery move of over 1000 pips from the vicinity of the key 0.5500 psychological mark, or 17-year lows set on March 19.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6499
Today Daily Change -0.0057
Today Daily Change % -0.87
Today daily open 0.6556
 
Trends
Daily SMA20 0.6314
Daily SMA50 0.6303
Daily SMA100 0.657
Daily SMA200 0.6689
 
Levels
Previous Daily High 0.6558
Previous Daily Low 0.6486
Previous Weekly High 0.6406
Previous Weekly Low 0.6253
Previous Monthly High 0.6686
Previous Monthly Low 0.5509
Daily Fibonacci 38.2% 0.6531
Daily Fibonacci 61.8% 0.6514
Daily Pivot Point S1 0.6509
Daily Pivot Point S2 0.6461
Daily Pivot Point S3 0.6436
Daily Pivot Point R1 0.6581
Daily Pivot Point R2 0.6606
Daily Pivot Point R3 0.6653

 

 

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