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FxWirePro: AUD/USD hovers around 200-DMA at 0.7531, good to go short on decisive break below

  • AUD/USD is extending decline for 3rd straight session, hovers around 200-DMA t 0.7531.
     
  • Short term technicals are showing signs of exhaustion, 100-DMA weighs on the upside.
     
  • Pair failed to takeout 100-DMA last week, momentum indicator heads lower.
     
  • Stochs are on the verge of rollover from overbought levels, RSI points south.
     
  • Decisive break below 200-DMA could see further downside, 38.2% Fib at 0.7489 next bear target.
     
  • Violation at 38.2% Fib finds next major support at 0.7469 (20-DMA).
     
  • We see bearish invalidation only on close above 100-DMA at 0.7556.

Support levels - 0.75, 0.7489 (38.2% Fib of 0.7749 to 0.7328 fall), 0.7469 (20-DMA)                    

Resistance levels - 0.7531 (converged 5 & 200-DMA), 0.7556 (100-DMA & trendline), 0.7588 (61.8% Fib)

Recommendation: Good to go short on decisive break below 200-DMA (0.7531), SL: 0.7560, TP: 0.75/ 0.7470/ 0.7430

 

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