AUD/USD outlook: Extended weakness pressures key supports
AUD/USD
The Australian dollar extends strong fall into second day (the pair was down 1.02% on Thursday and fell nearly 1% in early Friday), hitting new five-week low and pressuring key supports. The Aussie came under fresh pressure on risk aversion over uncertainty about the conflict in Ukraine and worries about China’s economic growth.
Fresh weakness completed a failure swing pattern on daily chart that signals continuation of downtrend from 0.7661 (Apr 5 high).
Bears cracked pivotal Fibo support at 0.7314 (50% retracement of 0.6967/0.7661 rally) and pressure key levels at 0.7292/83 (200DMA/daily cloud top) violation of which would add to bearish signals and open way for deeper drop towards 0.7232/04 (Fibo 61.8%/daily cloud base).
Daily studies maintain strong bearish momentum that supports the action, however bears may slow on headwinds from 200DMA and rising cloud top, but will remain in play while the price holds below 0.7400 (falling daily Tenkan-sen).
Res: 0.7332; 0.7369; 0.7397; 0.7428.
Sup: 0.7292; 0.7283; 0.7261; 0.7232.
Interested in AUD/USD technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
