AUD/USD chart on Trading View used for analysis
- AUD/USD is trading in a narrow range on the day, up slightly at 0.7229 at the time of writing.
- The pair has pauses 2 straight sessions of downside and is up 0.05% on the day.
- Upside has been rejected at 110-EMA and price action constrained within daily cloud.
- Recovery attempts lack traction, 5-DMA caps upside, we see scope for further weakness.
- The pair finds strong support at 1H 200-SMA at 0.7208, break below will see accentuation of weakness.
- 5-DMA is immediate resistance at 0.7245. Any bearish invalidation only above 110-EMA.
- Focus on Australia jobs data (due Thursday) for further impetus. From the US side we have NFIB survey (Tue), CPI (Wed), retail sales and Philly Fed survey (Thur) and industrial production (Fri).
Support levels - 0.7208 (1H 200-SMA), 0.7174 (21-EMA), 0.7146 (20-DMA)
Resistance levels - 0.7245 (5-DMA), 0.7281 (110-EMA), 0.73
Recommendation: Stay short below 0.72, SL: 0.7250, TP: 0.7175/ 0.7145/ 0.71
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
