FxWirePro: AUD/USD plummets on US dollar strength, set for deeper correction after recovery rejected at 21-EMA
FxWirePro:GBP/AUD capped by 5EMA, good to sell on rallies
• GBP/AUD strengthened on Friday as quick carry out of COVID-19 vaccinations across Britain and waning assumptions for negative interest rates in UK supported sterling .
• GBP/AUD rallies off from 1.7742 (Daily low), lift stops after finding resistance at 1.7879 (5EMA).
• GBP/AUD remains vulnerable, bulls must regain above the Ichimoku cloud top to stem the bearish tide and a rise above 61.8%fib at 1.7943 to regain momentum.
• Technical are bearish, daily RSI is negative at 43, daily momentum studies 5 ,9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.7742 (5EMA ), any close above will push the pair towards 1.7933 (Ichimoku Cloud Top).
• Strong support is seen at 1.7766 (Ichimoku cloud base) and break below could take the pair towards 1.7739 (38.2%fib).
Recommendation: Good to sell on around 1.7880, with stop loss of 1.7950 and target price of 1.7800