- AUD/USD trimmed a part of its intraday losses amid a modest USD pullback.
- The near-term technical bias remains tilted firmly in favour of bearish traders.
- A sustained move beyond the 0.7765-75 region will negate the negative bias.
The AUD/USD pair quickly recovered around 35 pips from daily swing lows and was last seen trading with only modest losses, around the 0.7670 region.
The US dollar trimmed a part of its intraday gains to three-and-half-month tops and extended some support to the AUD/USD pair. Apart from this, a sudden pick up in the US equity futures provided an additional boost to the perceived riskier aussie.
From a technical perspective, the pair once again attracted some buying ahead of the 38.2% Fibonacci level of the 0.7027-0.8008 positive move. The mentioned support is pegged near the 0.7620 region and should now act as a key pivotal point for traders.
Given Friday's sustained break below 50-day SMA, the near-term bias might have shifted in favour of bearish traders. The negative outlook is reinforced by the fact that oscillators on the daily chart have just started drifting into the bearish territory.
Sustained weakness below the 38.2% Fibo. support will reaffirm the bearish bias and pave the way for an extension of the recent retracement slide from the key 0.8000 psychological mark. The AUD/USD pair might then turn vulnerable to break below the 0.7600 mark.
The downward trajectory could then get extended towards testing 100-day SMA support, currently near the 0.7545-40 region. The AUD/USD pair could eventually drop to the 50% Fibo. level, around the key 0.7500 psychological mark.
On the flip side, the 50-DMA, coinciding with the daily swing highs, around the 0.7740-45 region, should now act as a strong resistance. This is closely followed by 23.6% Fibo. level resistance near the 0.7765-75 congestion zone.
A convincing breakthrough will negate any near-term negative bias and prompt some short-covering move. The subsequent positive move has the potential to lift the AUD/USD pair back above the 0.7800 mark, towards testing the 0.7830-40 supply zone.
AUD/USD daily chart
Technical levels to watch
|Today last price||0.7676|
|Today Daily Change||-0.0017|
|Today Daily Change %||-0.22|
|Today daily open||0.7693|
|Previous Daily High||0.7732|
|Previous Daily Low||0.7622|
|Previous Weekly High||0.7838|
|Previous Weekly Low||0.7622|
|Previous Monthly High||0.8008|
|Previous Monthly Low||0.7562|
|Daily Fibonacci 38.2%||0.7664|
|Daily Fibonacci 61.8%||0.769|
|Daily Pivot Point S1||0.7632|
|Daily Pivot Point S2||0.7572|
|Daily Pivot Point S3||0.7522|
|Daily Pivot Point R1||0.7743|
|Daily Pivot Point R2||0.7793|
|Daily Pivot Point R3||0.7853|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.