AUD/USD Price Analysis: Corrects from three-year tops, slips below 0.7900 mark


  • AUD/USD struggled to capitalize on the early uptick to fresh three-year tops.
  • Overbought conditions prompted profit-taking amid a modest USD rebound.
  • Weakness below the overnight swing low would negate any positive outlook.

The AUD/USD pair witnessed a modest pullback from three-year tops and slipped below the 0.7900 round-figure mark during the first half of the European session.

A turnaround in the global risk sentiment provided a modest lift to the safe-haven US dollar and drove flows away from the perceived riskier aussie. This, along with overbought conditions on short-term charts, prompted some profit-taking around the AUD/USD pair.

The pair, for now, seems to have snapped three consecutive days of the winning streak and dropped to support marked by the 23.6% Fibonacci level of the 0.7724-0.7936 recent positive move. A subsequent fall below the mentioned area might prompt some technical selling.

The AUD/USD pair might then accelerate the corrective slide towards the overnight swing lows, around the 0.7855 region. This coincides with the 38.2% Fibo. level, which if broken will negate any positive bias and pave the way for a further near-term corrective slide.

The downward trajectory would set the stage for a slide towards testing the 61.8% Fibo. level, around 0.7800 round-figure mark. This is closely followed by support near the 0.7785-80 horizontal zone before the AUD/USD pair eventually drops to the 0.7750-45 support.

On the flip side, the 0.7935 region (three-year tops) now becomes immediate strong resistance. Bulls might wait for some follow-through buying before positioning for any further appreciating move towards reclaiming the key 0.8000 psychological mark.

AUD/USD 4-hourly chart

fxsoriginal

Technical levels to watch

AUD/USD

Overview
Today last price 0.7897
Today Daily Change -0.0016
Today Daily Change % -0.20
Today daily open 0.7913
 
Trends
Daily SMA20 0.7718
Daily SMA50 0.7694
Daily SMA100 0.7473
Daily SMA200 0.726
 
Levels
Previous Daily High 0.793
Previous Daily Low 0.7854
Previous Weekly High 0.7878
Previous Weekly Low 0.7724
Previous Monthly High 0.782
Previous Monthly Low 0.7592
Daily Fibonacci 38.2% 0.7901
Daily Fibonacci 61.8% 0.7883
Daily Pivot Point S1 0.7868
Daily Pivot Point S2 0.7824
Daily Pivot Point S3 0.7793
Daily Pivot Point R1 0.7944
Daily Pivot Point R2 0.7975
Daily Pivot Point R3 0.8019

 

 

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