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FxWirePro: AUD/USD pauses downside at 0.78 handle, bias lower, test of 100-DMA at 0.7758 likely

  • AUD/USD hits 10-week lows at 0.7805 before paring some losses to currently trade around 0.7820 levels.
     
  • Technical studies are heavily bearish, scope for test of 100-DMA at 0.7758.
     
  • Indicators on weekly charts are bearish, RSI and Stochs have rolled over from overbought. MACD is on verge of bearish crossover on signal line.
     
  • Next major support lies at cloud base at 0.7777 (weekly 20-SMA) ahead of 100-DMA at 0.7758.
     
  • On the flipside, 5-DMA at 0.7888 is immediate resistance, break above will see test of 50-DMA at 0.7943.

Support levels - 0.7795 (cloud base), 0.7777 (weekly 20-SMA), 0.7758 (nearly converged 50-DMA and 38.2% Fib retrace of 0.71599 to 0.81250 rally)

Resistance levels - 0.7888 (5-DMA), 0.7897 (23.6% Fib), 0.7943 (50-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-struggles-at-channel-top-breaks-below-50-DMA-good-to-go-short-on-rallies-914047) has hit TP1/2/3.

Recommendation: Book partial profits at lows. Watch out for break below daily cloud for further weakness. Hold for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -119.886 (Bearish), while Hourly USD Spot Index was at 124.664 (Bullish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

 

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