- AUD/USD has closed below daily cloud, we see scope for further weakness.
- Price has slipped below 61.8% Fib retrace of 0.75012 to 0.81358 rally at 0.7743.
- Aussie dented on the back of a big miss in Australia CAPEX data.
- Seasonally adjusted capex fell 0.2% q/q in Q4 2017, missing markets expectations for a capex growth of 0.9 percent.
- Technical studies are bearish. RSI and Stochs biased lower. We evidence -ve DMI dominance with ADX above 25 and rising supporting trend lower.
- Next major support on the downside lies at 0.7637 (78.6% Fib). Retrace above daily cloud could see minor upside.
Support levels - 0.77, 0.7637 (78.6% Fib retrace of 0.75012 to 0.81358 rally), 0.7565 (trendline)
Resistance levels - 0.7794 (nearly converged 5-DMA and cloud base), 0.7818 (50% Fib), 0.7851 (20-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-recovery-capped-below-079-handle-good-to-go-short-on-rallies-1160904) has hit all targets.
Recommendation: Book partial profits at lows. Trail stop loss to 0.78. Hold for further weakness. Target 0.77/ 0.7640/ 0.76.
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