- AUD/USD reverses temporary bounce seen on Thursday, drops further on resurgent USD demand.
- USD bulls regained control ahead of the Fed’s bi-annual monetary policy report.
- AUD/USD extending decline after failure to hold break above 20-DMA on Feb 16th trade.
- Upside finds stiff resistance at 55-EMA at 0.7869. We see minor upside on break above.
- Technical studies are bearish. RSI and Stochs are biased lower. We see -ve DMI dominance.
- Bears now target 200-DMA at 0.7776. Violation there could see test of 61.8% Fib at 0.7743.
Support levels - 0.7776 (200-DMA), 0.7762 (cloud base), 0.7743 (61.8% Fib)
Resistance levels - 0.7853 (5-DMA), 0.7893 (38.2% Fib), 0.7907 (20-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-recovery-capped-below-079-handle-good-to-go-short-on-rallies-1160904) has hit TP1.
Recommendation: Book partial profits at lows. Trail stop loss to 0.79. Hold for further downside.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
