- AUD/USD declined on Thursday as investors switched to safe heaven assets as another fall in oil prices and cautious comments from Federal Reserve caused more worries about global economy.
- After hitting intraday low around 0.6980 the pair has recovered to trade at 0.7100 levels in the early US session.
- Further upside is expected to be limited as the Australian dollar is set weaken against US dollar in the short term due to falling oil prices.
- Technically in the 4 hours chart, the pair is capped by 50-day moving average, whilst the RSI heading south at 47.
- To the upside, the strong resistance can be seen at 0.7176, a break above this level would take the pair towards next resistance level at 0.7242.
- To the downside immediate support can be seen at 0.7043, a break below this level will open the door towards next level at 0.7000.
Recommendation: Go short around 0.7125, targets 0.7040, 0.6980, SL 0.7200
Resistance Levels
R1: 0.7108 (50% Retracement level)
R2: 0.7176 (61.8% Retracement level)
R3: 0.7242 (Feb 4th high)
Support Levels
S1: 0.7043 (38.2% Retracement level)
S2: 0.7000 (Psychological levels)
S3: 0.6960 (Feb 3rd high)
