- AUD/USD recovers from 2-month lows at 0.7712, trades around 0.7758 at the time of writing.
- USD weakness after Trump's protectionist-tariff announcements pushed the pair higher.
- Technical studies are bearish. RSI and Stochs biased lower. We evidence -ve DMI dominance with ADX above 25 and rising supporting trend lower.
- The major has closed below daily cloud and 200-DMA, and scope for further weakness remains.
- We see stiff resistance at 0.7782 (nearly converged 200 and 5 DMAs), retrace and close above could see minor upside.
Support levels - 0.7743 (61.8% Fib retrace of 0.75012 to 0.81358 rally), 0.77, 0.7637 (78.6% Fib retrace of 0.75012 to 0.81358 rally), 0.7565 (trendline)
Resistance levels - 0.7782 (nearly converged 5 and 200 DMA), 0.7818 (50% Fib), 0.7844 (20-DMA)
Recommendation: Watch out for close above 200-DMA for further upside.
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