FxWirePro: AUD/USD gains some upside momentum but still strongly bearish
AUD/USD declined on Tuesday as selloff in global stocks sent investors to safe heaven assets like Japanese yen and Swiss franc. In the upcoming session, Australia will release Westpac Consumer Sentiment, which if negativ…
AUD/USD declined on Tuesday as selloff in global stocks sent investors to safe heaven assets like Japanese yen and Swiss franc.
In the upcoming session, Australia will release Westpac Consumer Sentiment, which if negative, may send the pair back to its recent lows near the 0.6975 level.
Further upside is expected to be limited as the pair finds strong resistance at 0.7108 which should limit upside and bring a decline towards lower levels.
Technically in the 4 hours chart, the pair has extended its decline below its 20 SMA, whilst the RSI heading south at 46.
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 0.7100, targets 0.7040, 0.6950, SL 0.7200
