AUD/USD refreshes daily low below 0.6900 mark, downside remains limited


  • AUD/USD retreats over 100 pips from five-month tops set earlier this Wednesday.
  • The risk-on mood undermined the safe-haven USD and helped limit deeper losses.
  • Investors now look forward to the US macro releases for some meaningful impetus.

The AUD/USD pair extended its retracement slide from five-month tops and slipped below the 0.6900 mark, or fresh daily lows during the early European session.

The pair stalled its recent bullish trajectory and witnessed a modest pullback from the vicinity of the key 0.7000 psychological mark. The intraday slide of over 100 pips lacked any obvious fundamental catalyst and could be solely attributed to some profit-taking.

Extremely overbought conditions on short-term charts seemed to be the only factor that prompted traders to take some profits off the table. However, a combination of supporting factors helped limit any meaningful fall, rather might attract some dip-buying.

Growing optimism over a sharp V-shaped recover for the global economy remained supportive of the upbeat market mood. This, in turn, kept the safe-haven US dollar under pressure and extended some support to the perceived riskier Australian dollar.

Hence, it remains to be seen if the downtick marks the end of the AUD/USD pair's recent strong recovery move from the 0.5500 neighbourhood – 17-year lows – or is still seen as an opportunity to initiate some fresh bullish positions.

Market participants now look forward to the US macro data for some impetus later during the early North American session. Wednesday's US economic docket highlights the release of the ADP report on private-sector employment and ISM Non-Manufacturing PMI.

Technical levels to watch

AUD/USD

Overview
Today last price 0.6898
Today Daily Change 0.0002
Today Daily Change % 0.03
Today daily open 0.6896
 
Trends
Daily SMA20 0.6565
Daily SMA50 0.6398
Daily SMA100 0.6481
Daily SMA200 0.6658
 
Levels
Previous Daily High 0.6899
Previous Daily Low 0.6774
Previous Weekly High 0.6683
Previous Weekly Low 0.6519
Previous Monthly High 0.6683
Previous Monthly Low 0.6372
Daily Fibonacci 38.2% 0.6851
Daily Fibonacci 61.8% 0.6822
Daily Pivot Point S1 0.6814
Daily Pivot Point S2 0.6731
Daily Pivot Point S3 0.6689
Daily Pivot Point R1 0.6939
Daily Pivot Point R2 0.6981
Daily Pivot Point R3 0.7064

 

 

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