AUD/USD chart on Trading View used for analysis
- AUD/USD catches a mild bounceback, extends upside for 3rd straight session.
- The minor recovery from the fresh 2018 lows near 0.7040 could extend upto 21-EMA at 0.7168.
- Breakout at 21-EMA finds next major resistance at 55-EMA at 0.7247. We see bearish invalidation on breakout above.
- However, the major trend in the pair remains bearish and we do not see any signs of major reversal.
- Minor rallies could be used as shorting opportunities. Breakout at 55-EMA will negate our bearish bias.
Support levels - 0.7086 (5-DMA), 0.7041 (Oct 8 lows), 0.7020 (channel base), 0.6976 (88.6% Fib)
Resistance levels - 0.7168 (21-EMA), 0.7247 (55-EMA), 0.7283 (cloud base)
Recommendation: We prefer to wait for reversal in minor trend to go short.
