- AUD/USD consolidates Wednesday's slump, finds support from RBA Governor Lowe's hawkish comments.
- The pair edges higher from lows near 0.74 to currently trade around 0.7422 levels.
- The Australian dollar was on the back foot following the release of dismal Australian trade balance and Chinese services PMI data.
- The Australian trade surplus narrowed in March to 3107 mln on the back of a sharp rise in the imports.
- While, China's services PMI data for April fell for the fourth straight month, posting the weakest reading since May 2016.
- Commodites extend slide, Dalian ore futures opened 6.9% lower today. Copper prices dropped almost 3.5% on Wednesday and are trading slightly higher on the day.
- Technical studies are bearish. Price has shown breakout below major trendline support. RSI and Stochs are biased lower.
- We see drag till 0.7385 which is 61.8% Fib retrace of 0.7160 to 0.7749 rally likely.
Support levels - 0.7406 (session low), 0.7385 (61.8% Fib retrace of 0.7160 to 0.7749 rally), 0.7311 (Nov 21, 2016 low)
Resistance levels - 0.7465 (trendline), 0.7478 (5-DMA), 0.75, 0.7515 (20-DMA)
TIME TREND INDEX OB/OS INDEX
1H Neutral Oversold
4H Bearish Neutral
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to go short on rallies around 0.7430, SL: 0.7480, TP: 0.74/ 0.7385/ 0.7320
