- AUD/USD continues to extend sell-off as Treasuries continue to climb, boosting the Greenback.
- The major is trading in a 'Slopping Channel' pattern and finds strong support at channel base at 0.7572.
- Price action remains below daily cloud and major moving averages, breach at channel base will accentuate weakness.
- Technical indicators are bearish. Stochs are biased lower. RSI is below 50 and biased lower.
- On the weekly charts we see -ve DMI crossover on +ve DMI and price has slipped below weekly cloud.
- Momentum with the bears, breach at channel base will see drag till 0.7501 (Dec 8 low).
- Failure at channel base and retrace above 5-DMA could see test of 21-EMA at 0.77.
Support levels - 0.7572 (channel base), 0.7532 (Nov 21 low), 0.75
Resistance levels - 0.7637 (78.6% Fib), 0.7636 (5-DMA), 0.77, 0.77 (21-EMA)
Recommendation: Watch out for break below channel base for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -145.833(Bearish), while Hourly USD Spot Index was at 156.379 (Bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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